I file married filing jointly. I have a employer 401k plan, while my spouse does not. What does the AGI need to be below, before I can contribute to a traditional IRA?

Forum|Forum|1 year ago
February 28, 2025
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KrisD15

You each can contribute up to 7,000 each and an additional 1,000 if age 50 or older, HOWEVER, whether they are DEDUCTABLE contributions depend on your MODIFIIED Adjusted Gross Income, since you are also covered under an employer retirement plan.

Before you file, the TurboTax program will help you know the maximum deducible amount you can contribute for tax year 2024 (made in 2025).

Go to "Other Tax Situations" and scroll down to "Retirement Savings" then "IRA calculator tool" START

According to the IRS:

"For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $123,000 and $143,000"

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william-ng00Author

Guidelines:

Here are the MAGI phase-out ranges for tax year 2024 if you were covered by a retirement plan at work:

Single, head of household, or married filing separately (not living with spouse): The phase-out range is $77,000 - $87,000
Married filing jointly or qualified widow(er): The phase-out range is $123,000 - 143,000
Married filing separately (living with spouse): The phase-out range is $0 – $10,000

If you weren't covered by another retirement plan at work, but your spouse was, and you're:

Filing jointly: the phase-out range is $230,000 - $240,000

Does the rule (in red) apply to my situation, I have a 401k plan, while my spouse does not. Is the AGI now $230k-$240k.

JohnB5677

The IRA contribution limit for Married Filling Jointly is for over $123,000 but less than $143,000

Married filing jointly

is $123,000 or less a full deduction up to the amount of your contribution limit.
more than $123,000 but less than $143,000 a partial deduction.
$143,000 or more no deduction.

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