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<<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?>>

TMFPixy answers:
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.

Would the fact that I contributed around $7k to a SEP IRA affect the amount that can be contributed to the Spousal IRA? I got the Pub 590, and the text under Spousal IRA limit on page 6 makes me wonder.

Thanks much.

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