I want to establish a traditional individual retirement arrangement
(IRA) for my spouse, and I need additional information. What is the most I
can contribute to a spousal IRA during the tax year?
If both you and your spouse work and both have taxable compensation, each
of you can contribute to a separate traditional IRA. The amount that you can
contribute to each IRA is subject to a limit. Refer to chapter 1 of Publication
590 for more information on these limits. Contributions can be made even if
one spouse has little or no compensation, if you file a joint return. You
can make a contribution to a separate IRA for your nonworking spouse if you
file a joint return. Your total contribution to both your IRA and the spousal
IRA for this year is limited by certain factors such as your taxable compensation,
contributions to a traditional or Roth IRA and your age.
For additional information, refer to Tax Topic 451, Individual
Retirement Arrangements (IRAs), or Publication 590, Individual
Retirement Arrangements (IRAs) .
Can I take an IRA deduction for the amount I contributed to a 401(k)
plan last year?
No. A 401(k) plan is not an IRA. However, the amount you contributed is
not included as income in box 1 of your W-2 form so you don't pay tax on it
in the year you make the contribution. For more information, refer to Tax Topic 424, 401(k) Plans, Publication 575, Pension and Annuity
Income, or Publication 560, Retirement Plans for Small Business.
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