2020 contributions to IRA in 2021.

Forum|Forum|5 years ago
March 18, 2021
1 reply
4 views

I am retired, but eligible to contribute to my IRA and save on tax owed. My wife still works, has a 401k through them AND has an IRA from previous employment. Is she eligible to contribute to her IRA and save on tax owed. Currently the software act like she only has a 401k, so no tax savings.

Best answer by MinhT1

It depends on your joint Modified Adjusted Gross Income.

She is considered as considered as covered by a retirement plan at work (her 401(k)).

She can take a full deduction up to $104,000 of MAGI, a reduced deduction between $104,000 and $124,000 of MAGI and no deduction above $124,000.

Please read this IRS document.

As for you, you are not covered by a retirement at work but are filing jointly with a spouse who is covered. Your deduction may also be limited by your MAGI.

Please read this IRS document.

MinhT1Answer

Level 15

It depends on your joint Modified Adjusted Gross Income.

She is considered as considered as covered by a retirement plan at work (her 401(k)).

She can take a full deduction up to $104,000 of MAGI, a reduced deduction between $104,000 and $124,000 of MAGI and no deduction above $124,000.

Please read this IRS document.

As for you, you are not covered by a retirement at work but are filing jointly with a spouse who is covered. Your deduction may also be limited by your MAGI.

Please read this IRS document.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"