Tax Deduction due to IRA Hi,
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. ".
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.
Or will I alone get the tax deduction for $5500 that i plan to invest in IRA.
Thanks for your response. |