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New Member
posted Apr 27, 2024 5:33:22 PM

Spouse Receiving Pension is considered covered by a retirement plan at work?

Assume that a husband contributes to a retirement plan at work.  Wife receives a federal retirement civil service pension and does not work. 

 

She wants to contribute to a traditional IRA and take a deduction in 2024.  Is the wife considered covered by a retirement plan at work if she is receiving a pension?    Assume that the couple files a joint return and their 2024 AGI is below $204,000?

 

Can the wife take an IRA deduction even though she receives a federal civil service pension? 

Thanks  

0 2 22470
2 Replies
Level 15
Apr 28, 2024 4:27:13 AM

If wife is not working all year, she can't be covered by a retirement plan at work.

 

If wife is not working (no compensation), she can't contribute to IRA.

 

If wife's compensation is less than spouse's, spouse can contribute to wife's IRA within the usual limits.

 

@Eddie 3 

Level 15
Apr 28, 2024 4:48:25 AM

Non-working wife's IRA contribution supported by husband's compensation will be entirely deductible because the specified MAGI is below the limit above which the deduction is reduced.