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Jack makes 200,000 a year. Jill makes 120,000 a year. Jack has access to 401(k) plan at work and Jill doesn't. Their combines AGI is over 160,000 but Jill's AGI is under 160,000 (since it's 120,000).

(1) Can Jill make a TAX DEDUCTIBLE CONTRIBUTION to traditional IRA ?

If (1) is yes then:

(2) If Jill has made previous contributions to traditional IRA with after tax money (non-deductible contribution), Can she make this now deductible contribution to the same IRA account (and thus mix tax deductible and non-deductible contributions in the same account) ?

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Jack makes 200,000 a year. Jill makes 120,000 a year. Jack has access to 401(k) plan at work and Jill doesn't. Their combines AGI is over 160,000 but Jill's AGI is under 160,000 (since it's 120,000).

(1) Can Jill make a TAX DEDUCTIBLE CONTRIBUTION to traditional IRA ?


If Jill is unmarried and younger than 70 1/2, yes. If she's 70 1/2 or older, she can't contribute to a traditional IRA at all. If Jill is married and her spouse is not covered by a retirement plan, yes. If Jill is married and her spouse is covered by a retirement plan, it depends on their joint AGI. See the table in IRS Publication 590.

If (1) is yes then:

(2) If Jill has made previous contributions to traditional IRA with after tax money (non-deductible contribution), Can she make this now deductible contribution to the same IRA account (and thus mix tax deductible and non-deductible contributions in the same account) ?


Yes. She accounted for the nondeductible contributions in Part I of Form 8606, which is where she will also calculate the taxable portion of each disbursement. (It doesn't matter whether she has one traditional IRA account or a hundred; they all get lumped together for this calculation.) This is also covered in Pub 590.

TMF ExRO
Phil Marti

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Jill is married to Jack and is less than 70 yrs old. Jack has 401(k) and Jill doesn't. Combined AGI for both of them is 320,000 (Jack is 200,000 and Jill is 120,000).

The point of asking the question was when combined AGI for a married couple exceeds 160k but individual's income, who isn't covered by 401(k) at work, does not exceed 160k then can that married individual (with a spouse with 401(k) plan) make a deductible contribution ?

Thanks for your answer to the second part of the question though. I am still unclean about the first part of the question.
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The point of asking the question was when combined AGI for a married couple exceeds 160k but individual's income, who isn't covered by 401(k) at work, does not exceed 160k then can that married individual (with a spouse with 401(k) plan) make a deductible contribution ?

No. If joint AGI exceeds $160,000 and either spouse is covered by a plan, neither can make a deductible contribution to a traditional IRA. Individual earnings don't enter into the picture at all.

TMF ExRO
Phil Marti
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Thank you Phil.
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