I want to confirm whether a Traditional IRA contribution for my spouse is deductible.
Facts:
Filing status: Married Filing Jointly
Household income: ~$500,000+
I am covered by a 401(k) at work
My spouse is not covered by any retirement plan
My spouse has earned income (~$40k)
My spouse does not have any existing IRAs
Question: Can my spouse take a deduction for a Traditional IRA contribution in this situation?
The IRS table seems to show:
Full deduction if “married filing jointly with a spouse who is not covered by a plan at work”
No deduction if MAGI ≥ $240,000 when “married filing jointly with a spouse who is covered by a plan at work”
Since only one spouse (me) is covered, which rule applies?
Thanks for clarifying.
