The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: INFO for TMFTaxes & TMFExRO re: msg 39603||Date: 9/7/2000 6:20 PM|
|Author: TMFExRO||Number: 39683 of 120780|
I contributed AND DEDUCTED a $2000 Traditional IRA contribution on my 1999 tax return under a filing status of Married-Filing Separately.
Secondly, I am presently NOT COVERED by a qualified retirement plan, although my wife IS covered under a qualified employer retirement plan.
What matters, since we're talking about 1999, is your status then. I'm going to assume that it was the same--she was covered and you weren't.
Our combined AGI is for the 1999 tax year is $61,000.
Since you filed separately, you don't consider combined AGI, just yours. I'm going to assume that it was more than $10,000.
Based on the additional information above.... is my $2000 Traditional IRA Contribution AND DEDUCTION for the 1999 Tax year correct and proper or is there still a problem with the deduction?
If my assumptions are correct, no, it was not deductible. Deductibility for an MFS filer whose spouse is covered by a retirement plan is completely phased out at $10,000 AGI. You need to amend the return to show the contribution as a nondeductible traditional contribution.
If any of my assumptions is incorrect, please clarify.
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