"Anyway, our AGI's close to 50K, and we're in a 401K plan, so the deductability of our traditional IRA's '97 contributions is fading out. I used a 'what if' approach, plugging in different numbers to find the highest deductible contribution, and the software would let me split a total of $480 into the taxpayer and spouse IRAs (240 each) but wouldn't let me put in 0 & 480. I thought the IRS was more concerned with the total, and didn't care about how it was distributed. So is this a software glitch, a mushware glitch or an IRS feature?"Sounds like a software glitch. You are each allowed to contribute up to $2K to an IRA, and I believe starting this year (effective 1/1/98), if a spouse doesn't work outside the home, but the couple still has over $4K in income (and any couple that doesn't certainly isn't likely to be making IRA contributions anyway), you can contribute $2K to a spousal IRA that is completely tax deductible, even if you can't make any DEDUCTIBLE contributions yourself, so you could have 0 & 480 or even 0 & 2K. That's MY understnading of it, but I'm not a financial advisor.
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