Tom and Gerrie , both aged 68, file a joint return.

Question

Tom and Gerrie , both aged 68, file a joint return. Gerrie was covered by a pension plan at work with an employer contribution. Tom is a bum and just stays home.  If their 2022 AGI was $51,000, how much can they contribute to a traditional IRA for 2022?

Answer 1

For taxpayers that are over the age of 50, the traditional IRA contribution can be up to $7,000 per taxpayer in 2022.

There may be limits to the IRA contribution deduction on their tax return. In this scenario, Tom and Gerrie would get the full deduction because they are under the AGI threshold of married filing jointly with a spouse covered by an employer ($204,000 in 2022).