Tax year 2019. Taxpayer and spouse both over 50. Taxpayer has w-2 income and contributed $25,000 to company 401k. AGI is under $155,000.
Non working spouse. Can a deductible Spousal IRA be set up? If so, does Spouse get full $7,000 limit?
If there are income limits, are they based on AGI or MAGI?
Thanks Bill
Your answers are in IRS Pub 590A. Page 15 has definition of MAGI and pages 12 to 13 have the charts on deductibility when you are covered by an employer plan (Table 1-2) and Table-2 when you are not covered by a an employer plan but your spouse is. Assuming MAGI is close to the $155K you posted, you do not get a deduction, she does get a deduction for the maximum allowed for her age.
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