So I wasn't correct in my question. I meant to say my spouse could open an IRA and contribute to it for 2020 and we could reduce our AGI. I understand that the employer would have to create a 401k and to late for that for the 2020 credit. We calculate that 3-4k should be within the limits and enough to meet our needs. We just were not sure if we could do this (spouse opening an IRA and contributing).
Based on the link that was provided, then this should apply?
Both employed, but spouse has been layed off due to Covid restrictions and has no IRA or 401K. I am employed with employee sponsored retirement plan. I assume that this selection shown meets this condition and yes we are below the 196k.
| Married filing jointly and your spouse is covered by a plan at work | $196,000 or less | A full deduction up to the amount of your contribution limit |
