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I contributed AND DEDUCTED a $2000 Traditional IRA contribution on my 1999 tax return under a filing status of Married-Filing Separately.

Got it.

Secondly, I am presently NOT COVERED by a qualified retirement plan, although my wife IS covered under a qualified employer retirement plan.

What matters, since we're talking about 1999, is your status then. I'm going to assume that it was the same--she was covered and you weren't.

Our combined AGI is for the 1999 tax year is $61,000.

Since you filed separately, you don't consider combined AGI, just yours. I'm going to assume that it was more than $10,000.

Based on the additional information above.... is my $2000 Traditional IRA Contribution AND DEDUCTION for the 1999 Tax year correct and proper or is there still a problem with the deduction?

If my assumptions are correct, no, it was not deductible. Deductibility for an MFS filer whose spouse is covered by a retirement plan is completely phased out at $10,000 AGI. You need to amend the return to show the contribution as a nondeductible traditional contribution.

If any of my assumptions is incorrect, please clarify.

Phil Marti
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