The IRS guidance that you are referencing just indicates that her traditional IRA contribution will not be deductible. It doesn't prohibit making the traditional IRA contribution, the traditional IRA contribution is still permissible if not deductible. But as I said, with MAGI being below $218,000, a Roth IRA contribution would be far preferable and can be accomplished by asking the IRA custodian to recharacterize the traditional IRA contribution to be a Roth IRA contribution instead.
