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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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Assume wife is employed by her S-Corp and receives a W-2 for

Resolved Question:

Assume wife is employed by her S-Corp and receives a W-2 for $39,000 & the K-1 for $31,000 additional income. Husband is employed & receives W-2 from his employer for $80,000. Can they contribute to IRA to reduce tax burden?
Submitted: 6 years ago.
Category: Tax
Expert:  Lev replied 6 years ago.

LEV :

Hi and welcome to Just Answer!


They both may contribute into individual IRA accounts - however the deduction may be limited based on if they are covered by retirement plans at work.


If neither is covered by retirement plans at work – the contribution is fully deductible.


For married filing jointly if both are covered by retirement plans at work with Modified AGI above $109,000 - no deduction allowed.


If the husband is covered by retirement plans at work, but the wife is not - she may deduct her contribution if the Modified AGI is $167,000 or less.

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