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I have a client who is self employed and his wife works for a large company. He maxes out his SEP-IRA and she maxes out her 401(k). They make about $100,000 a year. Can they still use tax-deferred IRAs?


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The BIDaWIZ Team's Answer:

Do you know exactly what their modified adjusted gross income is for the year? They are right at the border of losing tax deductible status for a traditional IRA in 2013. They can only make a partial deduction to an IRA if their MAGI is more than $95,000 but less than $115,000 and phases out completely if it exceeds $115,000. If it's less than $95,000, they could deduct it. They could contribute to a Roth though, but that wasn't your question.

The BIDaWIZ Team

 

 

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