Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Quoting TMF Taxes:

Right...this assumes of course that you are covered by your employer retirement plan. If you are NOT covered by a qualified plan, all bets are off on the $10,000 limitation for married-separate filing. And this is just for a DEDUCTIBLE traditional IRA. Even if you are over the top of the income limits, you can still make your IRA deduction non-deductible.

you wrote:

The way I read Roy's response is that I am eligible to take the $2000 Traditional IRA deduction for 1999. Please clarify this for me Phil and Roy?

The reason I know you're seeing what you want to see in Roy's response is that I do the same thing all the time. Please note that Roy said nothing of the effect of your spouse's retirement plan coverage. It makes a difference.

I've already given you my answer; I'm not sure when Roy will be along to agree with me. You can verify what I said by looking at the table on page 8 of IRS Publication 590, which you can download from The far right column is you.

There's one ray of hope neither Roy nor I mentioned. If you look at the footnote in the IRS table, you'll see that you can take the full deduction if you and your spouse lived apart for the entire year. Absent that, you have a nondeductible contribution.

Just another of the many disadvantages of the MFS filing status.

Phil Marti
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.