I read a rule which says that "For 2015, if you are not covered by a retirement plan at work and you are married filing jointly with a spouse who is covered by a plan at work, your deduction is phased out if your modified AGI is more than $183,000 but less than $193,000. If your AGI is $193,000 or more, you cannot take a deduction for a contribution to a traditional IRA. ".===========>>>>>>>>>correct. many people are not allowed to make a tax-deductible contribution to their regular IRA as their income exceeds specific levels. However, you can still make a non-deductible IRA contribution and save for your retirement. Although your non deductible IRA contributions do not save you taxes in the year you make them, the earnings on them are tax-deferred, a key tax advantage of a regular IRA.
I need to understand that in light of this rule, Can I and my spouse both make a contribution of $5500 each to our traditional IRA. Will we get full deduction for that contribution to $11000 to IRA. For 2014, my wife was covered by a 401K plan through her employer but I was not. Also our modified AGI was around $140000 for 2014. Please advice. =========>>>>>>>>>>>>>unless you are covered by an employer-sponsored retirement plan at work, your contribution to a traditional IRA is always tax-deductible regardless of your MAGI. However, as your spouse is covered by an employer, she may not be allowed to deduct her contribution from her taxes as a Married couples filing jointly and her magi is $96,000 to $116,000 . no as magis exceeded $116K.The limits vary with your filing status and change each year.
Or will I alone get the tax deduction for $5500 that i plan to invest in IRA=======>>>>>yes; as you are not covered by a retirement plan at work, your phase out range is as follows as a Married couples filing jointly: $181K to $191K as your spouse is covered by a workplace retirement plan.