True, if you've earned too much. But . . .However, I realize that my spouses plan reinstates limits, albeit higher, so in the end I am out of luck to deduct a Traditional IRA this year. So I am back to the SEP IRA.
Your spouse has different limits than you, determined if they are covered or not and how much is earned. Northern Flicker is correct. This IRS page
Code:
https://www.irs.gov/retirement-plans/ira-deduction-limitsThis thread is from last year, but it's tax season, and I'm sure others with 1099 income may miss out on tax-deductible contributions.
It's possible to sock away quite a bit.
If one of you is covered and has a good plan, that one could possibly defer up to 66,000 under that plan. Then, if MAGI filing jointly for the year is less than 116000, they one can deduct another 6,500, (7,500 if over 50) to a tIRA, and if there is a 1099 side hussle, the over 50 spouse could deduct up to 7,500 for that. Then, deduct SEP contributions up to 20% of 1099 income. This could potentially bring deductions to nearly 100,000.
Correct me if I'm wrong.
Statistics: Posted by jb10 — Wed Mar 27, 2024 7:40 am
