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Contributions made to traditional IRAs for a non-working spouse are usually tax deductible. The taxable income of the working spouse must meet or exceed the amount of both spouse's IRA contributions.
Calculating the Deduction
You can deduct $1 from your taxable income for each dollar contributed to your non-working spouse's IRA.
Filing Status
You must file a joint return with your spouse for your spouse to contribute to a traditional IRA.
Function
You must file your taxes using form 1040A or form 1040 to claim the deduction. The deduction is an adjustment to income, also known as an above-the-line deduction, meaning you can take it in addition to the standard deduction.
Considerations
If the working spouse is covered by an employer-sponsored retirement plan, you can only deduct your contribution to a traditional IRA if your adjusted gross income is below the annual limits. For 2009, the limit is $166,000 for a full deduction and $176,000 for a reduced deduction.
Misconceptions
Even if you are married filing jointly, you and your spouse must maintain separate IRA accounts. IRS rules prohibit joint IRAs.
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