Why is an IRA contribution only resulting in a tax benefit if it's the taxpayer and not the spouse?

[rbynaker]

Is the spouse covered under an employer plan?

[cagwin007]

yes

[rbynaker]

And the taxpayer is not covered under an employer plan?

[cagwin007]

he is covered as well

[rbynaker]

Is the "retirement plan" box on his W-2 Wks checked?

[cagwin007]

Yes

[IRonMaN · Accepted solution]

Income limitation because one of them is an active participant in a retirement plan?