Receiving distributions from Ralph's pension does not make Ralph an active participant in a retirement plan for the purpose of a traditional IRA contribution. If modified AGI is under $184,000 for 2016, Ralph's entire eligible contribution to a traditional IRA is deductible. To be eligible, Ralph must not yet have reached age 70½ in 2016 and Alice must have at least as much in box 1 of her W-2 to support both her nondeductible traditional or Roth IRA contribution, if any, and Ralph's spousal IRA contribution.
