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Old 01-11-2007, 12:12 AM
Todd H.
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Default Re: IRA eligibility and its relation to 401k?

"woessner[at]gmail.com" <woessner[at]gmail.com> writes:

- quote -

> > In a married filing jointly scenario, where can i find documentation
> > of how one spouse having an employer 401k plan affects eligibility for
> > IRA's, specifically whether the contribution would be deductible?

> Pub 590, table 1-3.


Ah ha! Thanks a ton Bill. I knew it had to be in there somewhere,
and I was just overlooking it. That answers my question.

--
Todd H.
http://www.toddh.net/

 
Old 01-10-2007, 08:51 PM
woessner@gmail.com
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Posts: n/a
Default Re: IRA eligibility and its relation to 401k?

- quote -

> In a married filing jointly scenario, where can i find documentation
> of how one spouse having an employer 401k plan affects eligibility for
> IRA's, specifically whether the contribution would be deductible?


Pub 590, table 1-3.

- quote -

> I'm pretty sure having a 401k still allows a roth IRA contribution for
> both spouses, assuming agi is < 160k for the household.


It's not the regular AGI. You need to consider the modified AGI
(MAGI). It's also described in Pub 590. A full contribution is
allowed for MAGI < $150K and is phased out between $150K and $160K.

- quote -

> Here's what I'm wondering-- Could a traditional IRA contribution for a
> non-working spouse be deductible if the other spouse is covered by an
> employer 401k?


Yes. A full deduction is allowed for MAGI < $150K and is phased out
for between $150K and $160K.

--Bill

  #-1  
Old 01-10-2007, 08:25 PM
Todd H.
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Posts: n/a
Default IRA eligibility and its relation to 401k?


In a married filing jointly scenario, where can i find documentation
of how one spouse having an employer 401k plan affects eligibility for
IRA's, specifically whether the contribution would be deductible?

I'm pretty sure having a 401k still allows a roth IRA contribution for
both spouses, assuming agi is < 160k for the household.

Here's what I'm wondering-- Could a traditional IRA contribution for a
non-working spouse be deductible if the other spouse is covered by an
employer 401k?

I'm wading through irs pub 529 and haven't found the right mix of info
to determine.

Best Regards,
--
Todd H.
http://www.toddh.net/

 

Tags
401k, eligibility, ira, relation
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