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Old 02-23-2013, 09:23 PM
 
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I am in the process of filing my 2012 tax return joint return with my wife.

Both of us contributed to employer sponsored retirement plan.

Since modified AGI is greater than $92000, my CPA has indicated that we can contribute a total of $5080 towards IRA.

Please advice if we need to contribute equally or is there a proportion that need to be followed.

Else would it be ok if I can contribute $5000 towards IRA and my wife can contribute only $80.

Regards!
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Old 02-24-2013, 10:20 AM
 
Location: southwestern PA
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What did your CPA advise?
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Old 02-24-2013, 07:20 PM
 
Location: Skokiewood
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I suspect your CPA is telling you the amount of IRA contribution you can deduct. You can still contribute up to $5000 (assuming you're under 50), you just wouldn't get a deduction for the entire contribution.

Since you're in the phaseout level of MAGI, I'm guessing your MAGI must be $101,840. That means you can deduct up to $2540 for contributions to each of your IRAs ($5080 total). But you can't mix and match the deductions - it's a per individual limitation. That said, if you contribute more than $2540 to each of your IRAs, you would get basis in the IRA for the nondeductible portion of the contributions (i.e., that portion could be withdrawn tax-free in retirement).

More in IRS Pub 590:
Publication 590 (2012), Individual Retirement Arrangements (IRAs)
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Old 02-24-2013, 11:18 PM
 
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Yes MAGI is $100K+ and it is deduction of $5080 and not contribution.

I still have not spoken to my CPA yet. I will check with him and get the confirmation that me and my wife contribute/deduct $2540 each.

Thanks!
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