page 13-11 under spousal IRA says: if neither spouse is an active participant, there is no deduction phase out. I have a guy who definitely says he was not eligible to participate in a retirement plan and made 185,000. his wife does not work. now, since he was not eligible to participate in a retiement plan, my understanding is he can contribute 5000 dollars to an ira and take a full deduction(since there is no phase out limit if he was not eligible to participate in a retirement plan. Also, his wife can take a spousal ira deduction for the full amount of 5000 due to the facts above. Am i correct or there is misunderstanding? thanks
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Question. How did he make 185,000? You must have some evidence of that, W2? 1099?Originally posted by ardi600 View Post
If a W2 then look to see if retirement plan box is checked thereon. If not from earned income, did he, like Romney, make it all on investments?ChEAr$,
Harlan Lunsford, EA n LA -
he has
a w-2 and box 13 is not checked. he works work an aircraft company and he is paid hourly, so he is does not get benefits.Comment
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Is he a union member? They have pensions that don't show on a W-2.Comment
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If the case is actually as you describe, then, yes, he and his spouse can both take the maximum IRA. And, in fact, if there IS a defined-contribution retirement plan (i.e, 401K, etc) and he did not contribute to it at all (not even one pay period), he is not an active participant and can still do the IRA's.Originally posted by ardi600 View PostComment
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IRAs
Based on your set of circumstances both can contribute-remember if they are over 50 they can contribute $6,000.
Would they qualify for an HSA-If they have health insurance with either single or family deductibles of $1,200 & $2,400 respectively.
A lot of people are missing out on HSA's
SabreSabre
" You don't learn much from the second kick of a mule."Comment
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