@Anonymous wrote:
That's what it looks like to me but I have received conflicting responses and can't find a definitive answer or example about it. Most people say only my wife's IRA will be deductible since I have a 401k.
Thank you for the reply.
The "definitive answer " is in the IRS publication I posted the link to - what the IRS says, not what "responses" have said. In your case you said that you are covered bu a 401(k) and your spouse does not work. If your MAGI will be less then $100K then the IRS chart for not cover by a retirement plan at work but spouse is covered will apply. The chart shows that for 2020, as long as the MAGI on the joint return is less than $196K then the spouse gets a full deduction (for 2021 that amount is less than $198K).
https://www.irs.gov/retirement-plans/2021-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-not-covered-by-a-retirement-plan-at-work
============= 2021 chart from IRS pub.============
If you're not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction.
|
If Your Filing Status Is...
|
And Your Modified AGI Is... |
Then You Can Take... |
| single, head of household, or qualifying widow(er) |
any amount
|
a full deduction up to the amount of your contribution limit.
|
| married filing jointly or separately with a spouse who is not covered by a plan at work |
any amount
|
a full deduction up to the amount of your contribution limit.
|
| married filing jointly with a spouse who is covered by a plan at work |
$198,000 or less
|
a full deduction up to the amount of your contribution limit.
|
|
more than $198,000 but less than $208,000
|
a partial deduction.
|
|
$208,000 or more
|
no deduction.
|
| married filing separately with a spouse who is covered by a plan at work |
less than $10,000
|
a partial deduction.
|
|
$10,000 or more
|
no deduction.
|
| If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the "Single" filing status. |
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
