One of us is covered by a retirement plan at work so we should fall into the MAGI under $218,000 for tranditional IRA contributions.

Hello,

We would like to contribute $7,500 each (MFJ) into a traditional IRA before 4-15-24. That section in turbo tax indicates that our MAGI is over $136,000 so we don't qualify. But, only one of us is covered by a retirement plan so it seems we should fall into the $218,000 or less category. Also, can we contribute between 1-1-24 and 4-15-24 or did it need to be regular contributions to qualify? Thank you for the help!

Dan

190

Level 14

Feb 15, 2024 4:54:10 PM

The person who is NOT coved by an employer retirement plan can deduct their Traditional IRA if the AGI is under $218,000.

However, the person who IS covered by an employer retirement plan is subject to the lower income limit. They can still contribute to a Traditional IRA, but it would not be deductible (although I generally don't recommend making non-deductible Traditional IRA contributions).

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One of us is covered by a retirement plan at work so we should fall into the MAGI under $218,000 for tranditional IRA contributions.