Personal Finance and Investing

For the 2023 return but I am sure that the number for 2024 can be found
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But here’s an option many filers overlook: a spousal IRA contribution. It can benefit married couples when one partner earns less than the other—or even nothing. Eligible couples can use it to double contributions to traditional individual retirement accounts (IRAs) and deduct $15,000 rather than $7,500 for 2023, as long as they do so by April 15 this year (April 17 in Maine and Massachusetts). Or they can contribute to Roth IRAs with no deduction.

Eligible couples can use it to double contributions to traditional individual retirement accounts (IRAs) and deduct $15,000 rather than $7,500 for 2023, as long as they do so by April 15 this year (April 17 in Maine and Massachusetts). Or they can contribute to Roth IRAs with no deduction.

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Spousal IRA contributions have long been useful to couples when one partner forgoes employment or leaves the workforce temporarily to care for children or an elderly parent. Now many baby boomers are opting in when one spouse is retired and the other still working.

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Spousal contributions to traditional IRAs that are tax deductible bring the benefit of reducing reported income. Given the many phase-ins, phase-outs, and thresholds lurking in federal and state laws, lower income can lead to other savings.

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Be aware of income limits

These can be hairy, so start with the easiest: For 2023, spouses can make full or partial contributions to Roth IRAs if the couple’s modified adjusted gross income is under $228,000. For 2024, that rises to $240,000. Next are income limits for tax-deductible contributions to traditional IRAs. The first question is whether either spouse “actively participates” in a workplace retirement plan like a 401(k).

For a spouse who doesn’t participate married to someone who does, deductibility ends at $228,000 of income for 2023 and $240,000 for 2024. For the active participant, the deduction phases out at $136,000 for 2023 and $143,000 for 2024.

https://www.wsj.com/personal-finance/retirement/theres-still-a-way-to-double-your-retirement-tax-breaks-before-filing-0f689dc1?st=Rbz9Kn&reflink=desktopwebshare_permalink

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