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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.

Regards..Pixy
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