8.3 Contributions to a Traditional IRA If You Are Married

If both you and your spouse earned compensation in 2012 of at least $5,000 and are under age 50 at the end of the year, each of you may make a contribution of up to $5,000 to a traditional IRA for 2012 by April 15, 2013. Under the spousal IRA rule, the $5,000 per spouse contribution limit applies even if only one of you works, provided you file jointly and your combined compensation is at least $10,000. An additional contribution of up to $1,000 can be made for each spouse who is age 50 or older by the end of the year so long as there is compensation to cover it.

Contributions for 2012 are fully deductible up to the $5,000 limit ($6,000, if applicable) if neither you nor your spouse was covered by an employer retirement plan during the year. If either of you was an active plan participant, you are both considered active participants, and a deduction may be limited or disallowed depending on your modified adjusted gross income (MAGI). However, if you file jointly and only one of you was an active plan participant, a more favorable MAGI phaseout rule applies to the nonparticipant spouse, so that the spouse without coverage may be able to claim a deduction even if the participant spouse may not. The deduction phaseout rules are discussed below.

Spousal IRA contribution on joint return for nonworking or low-earning spouse.

If you file a joint return for 2012, you and your spouse may each contribute up to $5,000 to a traditional ...

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