Do they qualify for deductible IRA
we have a couple. both are still working earning $196k/yr. Each will have access to their own pension plan but neither have a 401k. Can they contribute to a deductible IRA?
we have a couple. both are still working earning $196k/yr. Each will have access to their own pension plan but neither have a 401k. Can they contribute to a deductible IRA?
Permalink Submitted by Alan - IRA critic on Mon, 2020-02-10 23:10
If their current employers maintain DB pensions, the “Retirement Plan” box on the W-2 will be checked showing them as active participants. That means their joint MAGI is much too high for making deductible TIRA contributions. 196k (if that is MAGI) is where the Roth phaseout begins, so they might be able to make full Roth IRA contributions if they wish, but they may be only interested in the deduction.