Q.

A.

You and your spouse can set up a Spousal IRA for you. If you filed a joint tax return in 2009 and your spouse has earned enough taxable income to cover it, you can each contribute up to $5,000 to an IRA or Roth IRA for a total of $10,000 for 2009.

If your joint adjusted gross income for 2009 is less than $166,000 and the working spouse is not part of a qualified retirement plan, the entire contribution is tax-deductible. If your joint adjusted gross income is between $166,000 and $176,000, only a portion is deductible. If you exceed that amount, you can't deduct. If you or your spouse was covered by an employer retirement plan at any time during the year, your deduction may also be limited, no matter what your joint adjusted gross income is. With a Spousal Roth IRA, contributions aren't tax-deductible. In order to contribute, your adjusted gross income must be under $176,000 for 2009.

-- The Nest Editors

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