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posted Jun 5, 2019 11:59:49 PM

Is it possible to contribute and deduct for low retirement contribution even if MAGI is more than $122k

Me and my wife got retirement accounts at work, but my wife's retirement amount is very small ($361) and she didn't contribute to 401k, can she contribute to IRA and deduct in our taxes our joint MAGI is more than $122k.

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1 Best answer
Expert Alumni
Jun 5, 2019 11:59:51 PM

You are both considered as covered by a retirement plan at work. Because of this, your wife cannot contribute to an IRA and deduct it as your MAGI is more than $121k.

Please see this IRS document for more information:

https://www.irs.gov/retirement-plans/plan-participant-employee/2018-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work

1 Replies
Expert Alumni
Jun 5, 2019 11:59:51 PM

You are both considered as covered by a retirement plan at work. Because of this, your wife cannot contribute to an IRA and deduct it as your MAGI is more than $121k.

Please see this IRS document for more information:

https://www.irs.gov/retirement-plans/plan-participant-employee/2018-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work