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    debyoung's Avatar
    debyoung Posts: 9, Reputation: 1
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    #1

    Oct 27, 2011, 11:34 AM
    Traditional IRA
    You have a MFJ couple that has a combined AGI of $170,000 One spouse is covered by an employers retirement plan and doesn't contribute to a traditional IRA. The other spouse is not covered by a retirement plan and contributes $6000 to a traditional IRA. Does she get to take the $5000 credit and roll the additional $1000 over to a form 8606 or is there AGI together too much so she has to put the entire $6000 on form 8606? Please help and advise!
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Oct 27, 2011, 12:47 PM
    She doesn't get a credit but rather a deduction. In 2011 filing MFJ and for AGI between $170K and $179K where she is not covered by a retirement plan but he is, she gets to deduct a portion of the $6K - I figure $4500. The rest gets reported as a non-deductible IRA contribution on Form 8606. For reference see IRS Pub 560: http://www.irs.gov/pub/irs-pdf/p590.pdf
    taxesforaliens's Avatar
    taxesforaliens Posts: 649, Reputation: 117
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    #3

    Oct 27, 2011, 04:33 PM
    Actually the limit to be able to deduct the contribution is $109000 for married filing jointly if one of the spouses is covered by a retirement plan at work.
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