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As a sanity check, I would like to have someone confirm my conclusion from reading Publication 590 regarding the ability to deduct a Traditional IRA contribution for my DW.

Through my employer, I am eligible and participate in a SIMPLE-IRA savings plan. My DW does not work and therefore is not covered under any retirement plan. We are filing taxes as married filing jointly.

Therefore, my understanding is that the following applies:

Full deduction to TIRA if AGI is less than $150k
Partial deduction if AGI is between $150k and $160k
No deduction if AGI is more than $160k

Assuming our AGI is less than $150k, we can take a full deduction on my DW's TIRA contribution. Is that correct?

Thanks for the sanity check!

dt
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dt asks:

Assuming our AGI is less than $150k, we can take a full deduction on my DW's TIRA contribution. Is that correct?

Yes, that is absolutely correct. You are eligible for a full deduction on a contribution to her TIRA because your AGI is below $150K and, because she is not employed, she does not participate in an employer's retirement plan through work. See page 17 of IRS Pub 590.

Regards...Pixy
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Yes, that is absolutely correct. You are eligible for a full deduction on a contribution to her TIRA because your AGI is below $150K and, because she is not employed, she does not participate in an employer's retirement plan through work. See page 17 of IRS Pub 590.

Thank you for the confirmation!

dt
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