You are eligible to contribute to a traditional IRA as long as you have earned income and are under age 70-1/2. For 2019 the most that can be contributed to a traditional IRA is the smaller of:
- $6,000 ($7,000 if you are age 50 or older); or
- your taxable compensation.
If you have no retirement plan at work and you're younger than 70 1/2 you can put money in up to the annual contribution limit and deduct the entire amount from your taxes. If your spouse doesn't work outside the home, he or she can also invest up to the federal limit and deduct the full amount.
If you are married and your spouse is covered by a retirement plan at work and you aren’t, and you live with your spouse or file a joint return, your deduction is phased out if your modified AGI is more than $193,000 but less than $203,000 . If your modified AGI is $203,000 or more, you can’t take a deduction for contributions to a traditional IRA.
[Edited 03.24.20 | 4:14 pm]
