@jm789op wrote:
So in summary: if I'm working and I'm covered by a retirement plan and i turned 701/2 in 2019 and my spouse who is retread and receives no compensation except for their social security and pension, then they cannot take the IRA deduction.
Not correct.
*You* cannot contribute to a Traditional IRA at all for 2019. Your spouse (if under age 70 1/2) can contribute as long as the taxable compensation on a joint return to support the contribution.
Whether it will be deductible or not depends on the MAGI on the joint return. For married filing jointly and the spouse is covered by a retirement plan at work then the spouses Traditional IRA contribution will be fully deductible if your joint MAGI is $193,000 or less. Above that it phases out and becomes total not deductible with a MAGO of $203.000 or more. See the IRS publication below for details.
The maximum IRA contributions for 2019 is $6,000, or $7,000 if you’re age 50 or older by the end of the year; or your taxable compensation for the year which ever is less.
See this IRS link for Traditional IRA deduction limits when covered by a retirement plan at work.
https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits |
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
