Below is a table of income phase out limits for IRAs. I am trying to understand this "Married filing jointly (spouse has employer plan, IRA owner does not)**"
Questions:
Case 1: My wife works and is covered by an Employer sponsored Retirement plan (where she can contribute Max $23.5k). I am disabled an not working, so not covered by an Employer plan. Does this mean that our income limit to contribute to TIRA (and be tax deductible) is $236k/$246k, before phase out comes in or is it $126k/$146k. She cancontribute $23.5k to her plan and I can contribute $7k to my own plan (spousal IRA).
Under case 1:
Q1: With me not working, is our income limit to contribute to either IRA $236k/$246k or $126k/$146k?
Q2: If I am not working and the IRA limit is $126k/$146k?, could I simply work for 1 hour during a year, and then the income limit would be expanded to $236k/$246k?
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Case 2: My wife works and is covered by an Employer sponsored Retirement plan (where she can contribute Max $23.5k). I work but am not covered by an Employer sponsored plan. Does this mean that our income limit to contribute to TIRA (and be tax deductible) is $246k/$246k, before phase out comes in or is it $126k/$146k. She can contribute $23.5k to her plan and I can contribute $7k to my own plan (spousal IRA).
Under case 1:
Q1: Is this the case that is being specified "Married filing jointly (spouse has employer plan, IRA owner does not)**" here, where both people are working? That is, not the case where one spouse is not working, but where both spouses are working, but one of them is not covered by Employer sponsored plan.
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Married Filing Jointly $126 to $146k
Married filing jointly (spouse has employer plan, IRA owner does not)** $236 to $246k
