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Level 2

Question

IRA Contributions

Forum|Forum|2 years ago
February 9, 2024
3 replies
18 views

My question is if I can contribute up to $15,000 (for two of us), why does it only reduce our taxable income by $7,500?

Level 15

Are you entering each 7,500 contribution under the right spouse? Not 15,000 for one spouse. Do you have enough earned income to qualify to make the full contributions?

Level 2

We have enough income but my wife has a retirement plan through her employer and I think that might be the fly in the ointment here.

Level 15

If your wife's traditional IRA contribution is nondeductible, it will be reported on line 1 of her Form 8606 which must be included in your tax return.