Question

Leon, age 45, is an active participant in his employer’s defined benefit retirement plan, but he would also like to make a deductible contribution to a traditional IRA this year. Leon is married, files a joint return with his wife, and has an AGI of $113,000 in 2020. What is the maximum deductible contribution that Leon can make to a traditional IRA?

Answer 1

- Married couple who are filing jointly can take the full IRA deduction if neither spouse is covered by a retirement plan at work.

-  If one spouse participates in a plan, then these income restrictions apply:

• A full deduction is available if your modified AGI is $196,000 or less.
• A partial deduction is available for incomes between $196,000 and $206,000.
• No deduction is available for incomes greater than $206,000

- Here it is not clear whether his wife is covered by retirement plan or not. Assuming she is not covered under retirement plan and it is given that AGI is of $113,000.

So as per the above provision Full deduction is available.