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URL:  http://boards.fool.com/quoting-tmf-taxes-rightthis-assumes-of-course-13273826.aspx

Subject:  Re: INFO for TMFTaxes & TMFExRO re: msg 39603 Date:  9/9/2000  5:15 AM
Author:  TMFExRO Number:  39735 of 121219

Quoting TMF Taxes:

Right...this assumes of course that you are covered by your employer retirement plan. If you are NOT covered by a qualified plan, all bets are off on the $10,000 limitation for married-separate filing. And this is just for a DEDUCTIBLE traditional IRA. Even if you are over the top of the income limits, you can still make your IRA deduction non-deductible.

you wrote:

The way I read Roy's response is that I am eligible to take the $2000 Traditional IRA deduction for 1999. Please clarify this for me Phil and Roy?

The reason I know you're seeing what you want to see in Roy's response is that I do the same thing all the time. Please note that Roy said nothing of the effect of your spouse's retirement plan coverage. It makes a difference.

I've already given you my answer; I'm not sure when Roy will be along to agree with me. You can verify what I said by looking at the table on page 8 of IRS Publication 590, which you can download from http://www.irs.gov/forms_pubs/index.html. The far right column is you.

There's one ray of hope neither Roy nor I mentioned. If you look at the footnote in the IRS table, you'll see that you can take the full deduction if you and your spouse lived apart for the entire year. Absent that, you have a nondeductible contribution.

Just another of the many disadvantages of the MFS filing status.

TMF ExRO
Phil Marti
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