Sorry, Yes we file joint. I have an extension to Oct 15/
I work on commission so its looking like I will be close to or over the $125,000 income limit to take the IRA deduction. Its my wife IRA but she also has a 401K at work so the income cap on the IRA is $125,000.00
This year I may be more under the $125,000 limit. So it may be better to just move the non deductible money in 2020 to a 2021 contribution. Not sure how to do this. She could just withdraw it and immediately deposit it back for this year. Also, how does she reconcile it on the form with IRS.
Also, she withdrew $1100.00 last year. Can she avoid paying taxes on the $1100.00 since she has money that should be reclassified as non deductible?
