his allowable IRA deduction can be affected by being covered by an employer-sponsored retirement plan. There is a phaseout if your modified AGI is over $105,000 and you are covered by an employer plan. in addition, if his spouse is a social security recipient, a portion may need to be added back to arrive at modified AGI. since you're already at $120K of AGI, there could be a complete phase-out of deductible IRA contribution for him.
however, the spouse, since apparently not covered by an employer retirement plan, may be allowed a deduction. Spousal IRA rule - provided a joint return is filed. the lower-earning spouse (even if no earned income) can consider the other's earned income to the extent it was not been taken into account in making an IRA contribution for the higher-earning spouse
