Spousal IRA and Roth for me?

[moof]

I'm digging through things and here is what I see.  My wife is stay at home with no retirement plan at work due to not working, and our MAGI is over 118k, less than 184k.  I am covered by 401k plan at work.

So as I read things we can put 5500 a year under her name that is deductible in a traditional IRA.  I cannot deduct a traditional IRA due to being over 118k and being covered at work, so it looks like a Roth contribution is my best option.  I think this is the third time I have been through things, and I think I finally have it right?

Rules for me:
https://www.irs.gov/retirement-plans/plan-participant-employee/2016-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-not-covered-by-a-retirement-plan-at-work
https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that-you-can-make-for-2016

Rule for wife:
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

[MDM]

I'm digging through things and here is what I see.  My wife is stay at home with no retirement plan at work due to not working, and our MAGI is over 118k, less than 184k.  I am covered by 401k plan at work.

So as I read things we can put 5500 a year under her name that is deductible in a traditional IRA.  I cannot deduct a traditional IRA due to being over 118k and being covered at work, so it looks like a Roth contribution is my best option.  I think this is the third time I have been through things, and I think I finally have it right?

Yes!

[seattlecyclone]

Yep, sounds right!

[MetalCap]

To tack on to this question, if my wife was laid off in January and put 1 paycheck (less than $5,500) into her 401k, does that now disqualify her from a tIRA this year?

MAGI and other 3's are very similar to OP

[seattlecyclone]

Being covered by a 401(k) for even one paycheck is enough to trigger the lower income limit for deductible TIRA contributions.

[moof]

To tack on to this question, if my wife was laid off in January and put 1 paycheck (less than $5,500) into her 401k, does that now disqualify her from a tIRA this year?

MAGI and other 3's are very similar to OP

I wish this had links to IRS rules to back it up, but sounds like once she has made ANY contributions for the year the well is poisoned for the rest of the year.  It counts as "participating" as far as the IRS is concerned.  She would be able to do Roth IRA contributions if filing married filing jointly and under the 184k combined MAGI limit, but not any deductible traditional IRA deductions.
http://finance.zacks.com/can-contribute-ira-same-year-job-terminated-401k-9547.html

[MetalCap]

I was afraid of that "poisoning" but the employer match/severance payment into her 401k was worth well more than the tax savings for a tIRA vs a Roth