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Foolish Prof writes:

<<Will someone (TMFPixy ?) please comment on the new (1998) Spousal IRA rules. I opened one for my not-working-outside-the-home wife and contributed the $2k for 1998. My accountant did not exclude this from taxable income because, he said, our joint AGI (~$123K) was too high. I was under the impression that the limiting AGI for joint returns was $150K before reductions in exclusion from taxable income kicked in.

Does anyone have an IRS pub number on this?>>


Sheesh! Fire that accountant and get a new one for next year that keeps up with the tax laws. Your understanding of the deductibility of a contribution to a traditional IRA for a non-employed spouse is absolutely correct.

Tell that idiot to see the chart on page 8 of IRS Publication 590 (Individual Retirement Arrangements) obtainable at http://www.irs.ustreas.gov/prod/forms_pubs/index.html. And then make him/her prepare -- gratis -- and file the amended return on your behalf to get the deduction you were legitimately due to take.

Regards..Pixy
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