Can I get deductions for my Traditional IRA contributions? I moved jobs in June and did NOT avail of new employers 401k. My wife is not working also. My MAGI is over 123K

[macuser_22 · Accepted solution]

No you cannot if covered by a retirement plan at work at any time during 2018 - even one day.

[nikomangahas]

Thank you macuser_22! So my wife is not working as well, doesn't it count as 1 Active and 1 Non-Active (AGI limit of $193k instead of $123K)

[macuser_22]

There is only one MAGI on a joint tax return.

See this IRS link for Traditional IRA deduction limits when covered by a retirement plan at work.

<a rel="nofollow" target="_blank" href="https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits">https://www.irs.gov/Retirement-Plans/IRA-...>

[nikomangahas]

Thanks again! I understand these so far, and I'm reviewing the IRS website too, but what I wanted to confirm was - is my wife considered as 'not covered by a retirement plan at work' because she does not work?

[macuser_22]

Your spouse, if not working, would not be covered so she could make a IRA contribution to her own IRA at the higher limits for a non-covered spouse when  the other spouse is covered.

[nikomangahas]

Awesome, thank you macuser_22! Appreciate your responses!