Spouse benefits in a qualified plan, may I still contribute a deductible contribution to an IRA.

[2muchstress]

If my spouse is benefitting in a QP, am I also considered to be benefitting for purposes of making a deductible IRA contribution? Our income is over the phase out limits.

Also, is she considered benefitting if she is only receiving an accrual in a DB plan?

Thanks.

[Appleby]

You are not considered active just because your spouse is an active participant. While, your spouse’s active participant status may affect your ability to deduct your traditional IRA contribution, it is not necessarily an all-or-none situation, i.e. you could be able to deduct a portion of the contribution. See the chart “Traditional IRA deductibility Limit for 2003” at http://www.investopedia.com/university/ret...ns/ira/ira2.asp for details

Under a defined benefit plan, an individual is considered active if he/she is eligible to participant in the plan---whether or not he/she receives a contribution or benefit for the year.