General chatter - Know anything about taxes and IRA deductions?




Sheila53
01-09-2007, 08:16 PM
I believe the law changed last year so that if you are a spouse who has a traditional IRA, but aren't covered by an employer's retirement program, the deposits you make to your traditional IRA are deductible no matter what your adjusted gross income is on your joint return. I'm wondering, however, if I must be earning income to get the deductibility, even if the IRA was opened when I was working.

Anyone know anything about that? I've been reading tax stuff, and can't find that specific question answered. Thanks!


WaterRat
01-09-2007, 08:54 PM
If you're not working, you can make a spousal deposit as long as you DH is working. If you're both not working you can't make a deposit at all. My DH is on disability, but as long as I'm working, he can make a spousal contribution. Don't know the answer about the deduction thing though....

Okay, look here, it may answer your question. (I'm not a tax advisor, only a librarian and tax payer. :) )

http://www.complianceheadquarters.com/IRA/IRA_Articles/2_24_06b.html

ennay
01-10-2007, 02:11 PM
you dont have to be working.

But I havent heard anything on limits being totally removed from ability to contribute. They get raised every year, but I dont think they have been completely removed.

I have my new turbo tax, but I have to go get my daughter from school, I'll take a peek later.


Sheila53
01-10-2007, 02:37 PM
Thanks, you two! I appreciate you taking the time to respond. Ennay, if you do find something about that on Turbo Tax, please let me know.

ennay
01-10-2007, 03:19 PM
No mention of the change to no limit on income

I assume since you are talking deductibility you are talking a traditional IRA, not a roth

If your spouse IS COVERED by a retirement plan at work (401K etc.) you are limited to a total Adjusted gross income of 150K for full deductibility 160K for partial deductibility

If your spouse is NOT covered by a retirement plan, then you can deduct the contribution regardless of his income.

When you opened the IRA is immaterial as they are kind of considered separate for each tax year.

HEre is the link to the IRS publication:
http://www.irs.gov/publications/p590/ch01.html#d0e1528

Sheila53
01-10-2007, 10:43 PM
Thank you! I'd read some of that, but didn't go all the way down to the table. Yippee--I get a deduction this year!