IRA Contribution Constraints

[bnwbass]

I am considering a IRA contribution for the first time to lower my tax situation. What are the rules or constraints for such a contribution. Example, must I keep the IRA untouched for a predetermined amount of time before I can claim any benefit from the IRA account?  How long before I can execute IRA disbursement if i need it? 

[Ashby · Accepted solution]

In reality, you always have access to your funds that are held in the IRA. The question is how much will it cost you?

If you are under 59-1/2 and withdraw money from an IRA, those funds are taxed at your regular income tax rate plus a 10% penalty. 

After 59-1/2, a traditional IRA does not carry the penalty, just normal tax. 

Be careful, if you or your spouse (if you have one) are covered by a retirement plan from an employer, there are income limits that can make you ineligible for a deduction.

[bnwbass]

Thank you, I am finding now that because i'm covered by a retirement plan from an employer, and with  income limits we ineligible for a deduction.  Leads me to the decision of filing separate and not joint married. Either way I am over the limit but my spouse on her own is not.  Is this a viable option to file separately and claim the IRA contribution  for only her?