IRA contribution and Social security benefit

Submitted by Eun Hong on Mon, 2023-03-06 15:38

I am NOT covered by a Retirement Plan at work, my wife (who is retired) is receiving social security benefit and pension, can we (myself and my wife both) still deduct Traditional IRA ($14,000)? our filing status is married filing joint.

IRS Publication 590A stated if you are not covered by a retirement plan at work, use Table 1-3 Effect of Modified AGI on Deduction which stated you can deduct a full deduction for any amount of modified AGI.

The 590A also stated Social Security Recipients should use Appendix B if ALL of the following apply:
1. Received social security benefits (No but my wife received social security benefit),
2. Received taxable compensation (myself),
3. Contribution were made to your traditional IRA (my wife and myself both made traditional IRA contribution total of $14,000,
4. You or your spouse were covered by an employer retirement (none of us covered by an employer retirement plan).

My question is should we use Table 1-3 for full deduction of $14,000?



Submitted by Alan - IRA critic on Mon, 2023-03-06 17:14

  • Yes. Appendix B does not apply to your joint return because neither of you is covered by a workplace plan. You both get full IRA deductions per Table 1-3 as long as you have at least 14,000 of earned income.
  • That said, for each spouse that has reached 70.5 for the tax year you are referring to, deductible IRA contributions will reduce present and future QCDs if you are planning to make them.


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