Spousal IRA Deductible

[Heroes821]

Quick question fellow Mustaches.  I am having a hell of a time making sure that my wife's IRA contributions will be deductible.  She has been a no-income SAHM this year.  I've heard there is a cap on income to deduct contributions for her, but I'm having trouble locating it on irs.gov.


Also, when determining if you qualify for a Roth IRA for the year, without plowing through the tax forms is a quick calculation just: total income minus 401k, minus hsa?

[seattlecyclone]

Here's what you're looking for.

If you have a retirement plan at work, the deduction phase-out for her begins at $186k MAGI. If you don't have a retirement plan at work, she can deduct a traditional IRA contribution at any income level.

Your own limits will be different.

[Heroes821]

Thanks Seattlecyclone.

[channtheman]

The link posted by SeattleCyclone is for if you DO NOT have a retirement account at work. 

Here's the link for if you ARE covered by a retirement plan at work.

https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work

[Heroes821]

The link posted by SeattleCyclone is for if you DO NOT have a retirement account at work. 

Here's the link for if you ARE covered by a retirement plan at work.

https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work

Thanks Channtheman, but your link is for my as the working spouse deduction limit, not for my non-working spouse.

[channtheman]

The link posted by SeattleCyclone is for if you DO NOT have a retirement account at work. 

Here's the link for if you ARE covered by a retirement plan at work.

https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work

Thanks Channtheman, but your link is for my as the working spouse deduction limit, not for my non-working spouse.

Ahhhhh, I think I understand.  From your wife's perspective, she would use the link SeattleCyclone posted, right?  I've been trying to learn more about my taxes and tax situation recently and some things (a lot of things) still confuse me. 

[Heroes821]

Yes Chann,

IRAs get mucky once your income goes up around the 6 figure mark, but if you are married but single income you have to follow even more rules to put money in IRAs for your spouse since they had no personal income.  If say your spouse had a job that paid them $6000 for the year they would have no problem qualifying to put $5500 into an IRA because they made enough to do so, but IRA contributions require reportable income, unless you're married and only 1 of you is working.