UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 79074  
Subject: Re: IRA newbie question Date: 8/30/2001 5:48 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Greetings, Tjani, and welcome. You wrote:

I started investing in IRA just last year. I am married (doing joint filing for my taxes). I contribute to the maximum in my employer sponsored 401(k) plan. My spouse does not work. My AGI is less than $150,000.

Now, I am planning to contribute $2000 for my spouse in her traditional tax-deductible account and I would also like to contribute another $2000 for me in a Roth IRA account.

The question is if I can do this and still take the $2000 contribution towards my spouse's IRA contribution, as a tax deduction on my next year's joint tax filing ?

I am trying to validate my understanding of the IRAs.

Be assured your understanding is correct.

The answer you received from another poster saying your spouse is ineligible for a deductible traditional IRA because you participate in a 401k plan is incorrect. As long as your AGI remains below $150K, your spouse may have a fully deductible traditonal IRA and you may make a full contribution to a Roth IRA.

For details, see our IRA Area at http://www.fool.com/money/allaboutiras/allaboutiras.htm and IRS Publication 590 (Individual Retirement Arrangements) available for download at http://www.irs.ustreas.gov/forms_pubs/pubs.html.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.