Traditional IRA contribution for couple above age 60

[sureshrsk]

I was employed and received 90K salary less 30500 towards 401K. My wife reired in 2023 and has no wages.

i contributed 8000 towards IRA and for my wife another 8000 towards her IRA account.  Turbo tax shows only 8000 as deduction in 2024 instead of 16000 allowed and this results in  addl taxes doe for 1912. I paid 11316 and it calcalutes tax as 13200/-. I think the calulation is wrong in Turbotax for 2024.. I need someone to look into this and help me.

why am i given only 8000 credit for 2024 instead of 16000.

[SteamTrain · Accepted solution]

Check the tables in the link below....since you, yourself are covered by a Retirment plan at work for 2024 (401k)...then your ability to make a deductible contribution to your own IRA may be limited by your MFJ Modified AGI  (there's a link in the IRS article to what is included in MAGI).

That MAGI will include all your MFJ interest, dividends, Cap gains, and any retirement $$ your spouse receives  (might include some SS income too if she's tarted that).

2024 IRA contribution and deduction limits effect of modified AGI on deductible contributions if you...

[SteamTrain]

And the deductibility of the IRA for your non-working spouse, starts getting reduced if your MFJ - MAGI is at $230,000 or greater.....since you-yourself are covered  ( the "you", in the table below refers to your non-working spouse in this case):

2022 IRA contribution and deduction limits effect of modified AGI on deductible contributions if you...