Artículo If your spouse is covered.. If your spouse is covered.

id="en_US_2025_publink1000172658"> If your spouse is covered. If you aren't covered by an employer retirement plan, but your spouse is, and you didn't receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 9-2 . Filing status. Your filing status depends primarily on your marital status. For this purpose, you need to know if your filing status is single, head of household, married filing jointly, qualifying surviving spouse, or married filing separately. If you need more information on filing status, see Filing Status . Lived apart from spouse. If you didn't live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. Table 9-2. Effect of Modified AGI 1 on Deduction if You Aren’t Covered by Retirement Plan at Work If you aren't covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction . IF your filing status is... AND your modified AGI is... THEN you can take... Single, Head of household, or Qualifying surviving spouse any amount a full deduction. Married filing jointly or separately with a spouse who isn't covered by a plan at work any amount a full deduction. Married filing jointly with a spouse who is covered by a plan at work $236,000 or less a full deduction. more than $236,000 but less than $246,000 a partial deduction. $246,000 or more no deduction. Married filing separately with a spouse who is covered by a plan at work 2 less than $10,000 a partial deduction. $10,000 or more no deduction. 1 Modified AGI (adjusted gross income). See Modified AGI , on previous page. 2 You are entitled to the full deduction if you didn't live with your spouse at any time during the year. Modified AGI. You may be able to use Worksheet 9-1 to figure your modified AGI. However, if you made contributions to your IRA for 2025 and received a distribution from your IRA in 2025, see Pub. 590-A. . Don't assume that your modified AGI is the same as your compensation. Your modified AGI may include income in addition to your compensation (discussed earlier), such as interest, dividends, and income from IRA distributions. . When filing Form 1040 or 1040-SR, refigure the AGI amount on line 11a without taking into account any of the following amounts. IRA deduction. Student loan interest deduction. Foreign earned income exclusion. Foreign housing exclusion or deduction. Exclusion of qualified savings bond interest shown on Form 8815, Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989. Exclusion of employer-provided adoption benefits shown on Form 8839, Qualified Adoption Expenses. This is your modified AGI. Both contributions for 2025 and distributions in 2025. If all three of the following apply, any IRA distributions you received in 2025 may be partly tax free and partly taxable. You received distributions in 2025 from one or more traditional IRAs. You made contributions to a traditional IRA for 2025. Some of those contributions may be nondeductible contributions. If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. To do this, you can use Worksheet 1-1 in Pub. 590-B. If at least one of the above doesn't apply, figure your modified AGI using Worksheet 9-1 . How to figure your reduced IRA deduction. You can figure your reduced IRA deduction for Form 1040 or 1040-SR by using the worksheets in chapter 1 of Pub. 590-A. Also, the Instructions for Form 1040 include similar worksheets that you may be able to use instead. Worksheet 9-1. Figuring Your Modified AGI Use this worksheet to figure your modified AGI for traditional IRA purposes. 1. Enter your AGI from Form 1040 or 1040-SR, line 11a, figured without taking into account the amount from Schedule 1 (Form 1040), line 20 1. _____ 2. Enter any student loan interest deduction from Schedule 1 (Form 1040), line 21 2. _____ 3. Enter any foreign earned income and/or housing exclusion from Form 2555, line 45 3. _____ 4. Enter any foreign housing deduction from Form 2555, line 50 4. _____ 5. Enter any excludable savings bond interest from Form 8815, line 14 5. _____ 6. Enter any excluded employer-provided adoption benefits from Form 8839, line 30 6. _____ 7. Add lines 1 through 6. This is your modified AGI for traditional IRA purposes 7. _____ Reporting Deductible Contributions When filing Form 1040 or 1040-SR, enter your IRA deduction on Schedule 1 (Form 1040), line 20. Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit . The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Example. You are 30 years old and single. In 2025, you were covered by a retirement plan at work. Your salary was $67,000. Your modified AGI was $90,000. You made a $7,000 IRA contribution for 2025. Because you were covered by a retirement plan and your modified AGI was over $89,000, you can't deduct the $7,000 IRA contribution. You must designate this contribution as a nondeductible contribution by reporting it on Form 8606, as explained next. Form 8606. To designate contributions as nondeductible, you must file Form 8606. You don't have to designate a contribution as nondeductible until you file your tax return. When you file, you can even designate otherwise deductible contributions as nondeductible. You must file Form 8606 to report nondeductible contributions even if you don't have to file a tax return for the year. . A Form 8606 isn't used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. See Form 8606 under Distributions Fully or Partly Taxable, later. . Failure to report nondeductible contributions. If you don't report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Penalty for overstatement. If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. Penalty for failure to file Form 8606. You will have to pay a $50 penalty if you don't file a required Form 8606, unless you can prove that the failure was due to reasonable cause. Tax on earnings on nondeductible contributions. As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. See When Can You Withdraw or Use IRA Assets , later. Cost basis. You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. Inherited IRAs If you inherit a traditional IRA, you are called a beneficiary. A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after the owner dies. Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. Inherited from spouse. If you inherit a traditional IRA from your spouse, you generally have the following three choices. Treat it as your own IRA by designating yourself as the account owner. Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (section 403(b) plan), or Deferred compensation plan of a state or local government (section 457 plan). Treat yourself as the beneficiary rather than treating the IRA as your own. Treating it as your own. You will be considered to have chosen to treat the IRA as your own if: Contributions (including rollover contributions) are made to the inherited IRA, or You don't take the required minimum distribution for a year as a beneficiary of the IRA. You will only be considered to have chosen to treat the IRA as your own if: You are the sole beneficiary of the IRA, and You have an unlimited right to withdraw amounts from it. However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over into your own IRA within the 60-day time limit, as long as the distribution isn't a required distribution, even if you aren't the sole beneficiary of your deceased spouse's IRA. Inherited from someone other than spouse. If you inherit a traditional IRA from anyone other than your deceased spouse, you can't treat the inherited IRA as your own. This means that you can't make any contributions to the IRA. It also means you can't roll over any amounts into or out of the inherited IRA. However, you can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary. For more information, see Inherited IRAs under Rollover From One IRA Into Another , later. Can You Move Retirement Plan Assets? You can transfer, tax free, assets (money or property) from other retirement plans (including traditional IRAs) to a traditional IRA. You can make the following kinds of transfers. Transfers from one trustee to another. Rollovers. Transfers incident to a divorce. Transfers to Roth IRAs. Under certain conditions, you can move ass