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Without a plan, a married couple can make deductible IRA contributions when their MAGI is under $150k. With a plan, that MAGI limit is reduced to $70k.

Not quite. Check the table in Pub. 590 page 13.

If you file single and are not covered by a retirement plan at work, you can take a full deduction regardless of modified AGI.

If you file married filing jointly or separately and neither you nor your spouse are covered by a retirement plan at work, you can take a full deduction regardless of modified AGI.

If you file married filing jointly, but your spouse is covered by a retirement plan at work, your deduction will be limited if modified AGI exceeds $150k. No deduction is allowed if modified AGI exceeds $160k.

If you file married filing separately, but your spouse is covered by a retirement plan at work, you only receive a partial deduction if modified AGI is less than $10k. No deduction is allowed if modified AGI exceeds $10k.

Bill
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