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Financial Planning / Tax Strategies
|Subject: Modified AGI||Date: 2/27/2003 10:37 PM|
|Author: rschoemer||Number: 64146 of 122319|
Good Day Fools!
I am in the process of starting IRA's for my wife and I. I currently have a Traditional IRA set-up, but am over the income limit to take a deduction or convert it to a ROTH.
Our combined AGI is veeeery close to the $150,000 limit for full contributions to a ROTH, but in reading the instructions on page 2 of IRS Form 8606 under "Contributions" it says "Use the Maximum Roth IRA Contribution Worksheet below.... If you are married filing jointly complete worksheet seperately for you and your spouse."
Am I to compare our individual incomes against the $160,000 figure when calculating IRA contributions for each of us (i.e. a potential combined income limit of $320,000)?
If so, does the same Modified AGI rule apply for Traditional IRAs? Is it possible that my wife qualifies for a Traditional IRA deduction even if I don't? Her income only accounts for about $37,000 of our combined AGI.
I have a non-contributory profit sharing plan at work, and she participates in a 401k at hers. I just want to make sure I open the best choice IRA for each of us.
Thanks in advance for any assistance,
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