Eligible for regular IRA.

03-28-2007, 07:03 PM

- quote -

> Situation, husband has full time job with pension plan. Wife works
> very little and earned about $2,000 for 2006. Both over 55 yr. filing
> jointly. Husband not eligible for deduction for regular IRA. But
> wife can contribute up to $5,000 to a regular IRA and have it
> deductible.

Depends on their MAGI. Consult Pub 590, table 1-3. To summarize:

Full deduction allowed if MAGI < $150K
Partial deduction allowed if $150K < MAGI < $160K
No deduction allowed if MAGI > $160K

--Bill

#-1 03-28-2007, 05:25 PM

Situation, husband has full time job with pension plan. Wife works
very little and earned about $2,000 for 2006. Both over 55 yr. filing
jointly. Husband not eligible for deduction for regular IRA. But
wife can contribute up to $5,000 to a regular IRA and have it
deductible.

Is this correct.

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