Can non-wage-earning spouses make tax-deductible contributions to a Traditional IRA?
Yes. A spouse who does not earn income can contribute up to $5,000 for 2008 or 2009 ($6,000 if you are age 50 or older in 2008 or 2009) to a Traditional IRA and deduct the entire contribution from income reported on a joint tax return if the couple’s combined modified adjusted gross income (MAGI) is less than or equal to $159,000 for 2008 (or $166,000 for 2009). If the couple’s MAGI is between $159,000 and $169,000 in 2008 (or between $166,000 and $176,000 in 2009), the spouse’s contribution may be partially deductible.
