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Financial Planning / Tax Strategies


Subject:  Re: IRA understanding Date:  12/8/2007  10:37 AM
Author:  mrparrotfez Number:  97108 of 123001

>>While anyone under age 70 1/2 with either taxable compensation or a jointly-filing spouse with taxable compensation can make an IRA contribution of some sort, if either spouse is covered by a retirement plan at work, deductibility of traditional IRA contributions is subject to the AGI-based phaseouts explained in Chapter 1 of IRS Publication 590. If only one spouse is covered the phaseout ranges are different for each spouse.<<

I looked this up. It appears that we are in that neck of the woods where we can almost certainly take a partial deduction, but a full deduction is in question, thanks to me having a good year this year with the pen.

>>It could well be that your traditional IRA contribution is deductible but your wife's is not. In that case, she could make nondeductible traditional IRA contribution