My wife and I file jointly, we are both over 50 years old.
I still work and have an employer 401K plan. My MAGI exceeds IRA contribution limit for deduction. I will do a 2018 contribution of $6,500 to personal IRA, knowing no deduction allowed since my MAGI is too high and I'm covered by an employer 401K plan.
My wife is retired. Her income is zero. She is not covered by an employer 401K plan. Now my questions:
1) Because her income is zero, is she eligible to contribute to her own personal IRA at all? The money used for a contribution would have to come from our jointly held accounts.
2) If #1 is ok and she is eligible to contribute, is her contribution deductible because her income is zero and she is not covered under an employer 401K plan, or is not deductible because my MAGI (or is it our MAGI since we file jointly) exceeds the limit?