What is your total taxable compensation?

Taxable compensation for IRA purposes includes all the taxable income and wages you get from working for someone else, yourself or from a business or farm you own, such as:

• Wages
• Salaries
• Tips
• Commissions
• Self-employment income
• Taxable alimony and separate maintenance
• Nontaxable combat pay
• Taxable non-tuition fellowship and stipend payments

What is not considered taxable compensation?

Items such as earnings and profits from property, interest and dividend income, pension or annuity income, deferred compensation, income from certain partnerships, and any amounts you exclude from income.

What if I don't work or make less than my spouse?

If you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts:

1. The maximum allowable contribution for the tax year (considering catch-up contributions as applicable).
2. The total compensation included in the gross income of both you and your spouse for the year, reduced by the following two amounts:

• Your spouse's IRA contribution for the year to a traditional IRA.
• Any contributions for the year to a Roth IRA on behalf of your spouse.

Please review IRS pub. 590-A for additional information

What is modified adjusted gross income (MAGI)?

Modified adjusted gross income (MAGI) adds back certain deductions and exclusions back to your adjusted gross income (AGI). These typically include:

• Student loan interest deduction 
• Foreign earned income exclusion 
• Foreign housing exclusion or deduction 
• Exclusion of qualified savings bond interest  
• Exclusion of employer-provided adoption benefits 


If you took taxable Traditional IRA distributions in the tax year to which you want to make a contribution, you also will need to determine the taxable amount and make sure it has been applied to your AGI appropriately.

Please review IRS pub. 590-A for additional information

Qualifying surviving spouse requirements

You may be able to file as a qualifying surviving spouse if you meet all of the following requirements:

1. You were entitled to file a joint return with your spouse for the year your spouse died. It doesn't matter whether you actually filed a joint return.
2. Your spouse died in either of the two prior years. You must not have remarried or remarry before the end of tax year selected.
3. You have a child or stepchild (not a foster child) whom you can claim as a dependent or could claim as a dependent except that, for that year: the child did not meet the gross income test, the child filed a joint return, or you could be claimed as a dependent on someone else's return.
4. This child lives in your home all year, except for temporary absences.
5. You paid more than half the cost of keeping up a home for the year.

Please review IRS pub. 501 for additional information

Employer retirement plan coverage

Box 13 on the Form W-2 PDF you receive from your employer should contain a check in the “Retirement plan” box if you are covered. If you're still uncertain, check with your employer.

Please review IRS pub. 590-A for additional information

Head of household requirements

You may be able to file as head of household if you meet all the following requirements: 

1. You are unmarried or considered unmarried on the last day of the tax year.
2. You paid more than half the cost of keeping up a residence for the year. 
3. A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the qualifying person is your dependent parent, your dependent parent doesn't have to live with you.

Please review IRS pub. 501 for additional information