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Author: edjusted Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121563  
Subject: SIMPLE IRA and Traditional IRA Date: 3/1/2007 2:38 PM
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Hi, we're getting conflicting info from the accountant who's done our taxes and a new accountant we're considering (because of cost)...this seems like it should be easy answer.

For 2006, my wife and I will be filing as married jointly. Her income is under $70k while mine is over $80k. We both contribute minimum amounts to our company's SIMPLE IRA (about $1k for her and about $3k for me). We also both contributed to $4k each to our Traditional IRA accounts.

Accountant A is saying our Traditional IRA contributions should be deductible while accountant B is saying that since we're over the AGI limit of $80k *total* for a couple, we will not be able to get any tax benefits from our Traditional IRA because we're active in the SIMPLE IRA.

After some quick research online, I was able to find info that indicates that the $80k AGI limit is *per person*, so that my wife's Traditional IRA contribution would be deductible, while mine "doesn't count" for tax purposes.

Can anyone shed light on who's, if anyone, is right?
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