IRA Deduction with a 401k plan

Forum|Forum|2 years ago
January 16, 2024
1 reply
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I’m looking to deposit money into a IRA in order to lower my taxable income.. I’m filling joint and married.. both me and my wife work, however I’m the only one with 401k and I’ve contributed to it in 2023. Am I still able to take a deduction from the IRA deposit of 5,000 if my company has a 401k??

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DoninGA

Level 15

Go to this IRS website for information on contributions to an IRA when you have a retirement plan at work - https://www.irs.gov/retirement-plans/2023-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work

Bluelex18Author

Level 2

Thanks… it looks like I’m below the AGI it’s stating.. so I should be good but can I have the IRA open in my name or would it have to be under my wife’s name??

DoninGA

Level 15

If you are filing as Married Filing Jointly and both of you work and both receive compensation then you could open an IRA for both of you. One in your name and one in her name.