I'm active duty military and my spouse is covered by a retirement plan at work. Our combined income is $150k. Can I deduct my traditional IRA contribution?

Turbo Tax won't let me add the deduction because our income is above $124k, but as I understand it, the military doesn't have a qualified retirement plan, so that would increase our MADI for contribution to $196k.

posted

No, you will not be able to deduct traditional IRA contributions if your modified adjusted gross income is over $124k because you were covered by a retirement plan at work.

You are still covered by a retirement plan as a military member and box 13 on your W-2 will have the box by Retirement plan checked.

Please see IRS Retirement Topics - IRA Contribution Limits for additional information.

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