I have a question concerning 401K's and deductable IRA's. My wife lost her job early last year. She had a pension and a 401K with the company. Last year she rolled over the pension into a self directed IRA so she no longer has a pension associated with the company. She still, hovever, has the 401K with the former employer. She currently works only infrequently and has no pension or 401K where she now works. I am covered by a pension plan and don't qualify for a deductable IRA as my income exceeds the deductable limit. My question is: Can she have a deductible spousal IRA even though she still retains the 401K with the previous employer? Is there an IRS publication that covers this topic?

Thanks

Rusty Nelson