Spousal IRA

§ 219. Retirement savings(a) Allowance of deductionIn the case of an individual, there shall be allowed as a deduction an amount equal to the qualified retirement contributions of the individual for the taxable year. (b) Maximum amount of deduction(1) In generalThe amount allowable as a deduction under subsection (a) to any individual for any taxable year shall not exceed the lesser of—(A) the deductible amount, or (B) an amount equal to the compensation includible in the individual’s gross income for such taxable year. (2) Special rule for employer contributions under simplified employee pensionsThis section shall not apply with respect to an employer contribution to a simplified employee pension. (3) Plans under section 501(c)(18)Notwithstanding paragraph (1), the amount allowable as a deduction under subsection (a) with respect to any contributions on behalf of an employee to a plan described in section 501(c)(18) shall not exceed the lesser of—(A) $7,000, or (B) an amount equal to 25 percent of the compensation (as defined in section 415(c)(3)) includible in the individual’s gross income for such taxable year. (4) Special rule for simple retirement accountsThis section shall not apply with respect to any amount contributed to a simple retirement account established under section 408(p). (5) Deductible amountFor purposes of paragraph (1)(A)—(A) In generalThe deductible amount is $5,000. (B) Catch-up contributions for individuals 50 or older(i) In generalIn the case of an individual who has attained the age of 50 before the close of the taxable year, the deductible amount for such taxable year shall be increased by the applicable amount. (ii) Applicable amountFor purposes of clause (i), the applicable amount is $1,000. (C) Cost-of-living adjustment(i) In generalIn the case of any taxable year beginning in a calendar year after 2008, the $5,000 amount under subparagraph (A) shall be increased by an amount equal to—(I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2007” for “calendar year 2016” in subparagraph (A)(ii) thereof. (ii) Rounding rulesIf any amount after adjustment under clause (i) is not a multiple of $500, such amount shall be rounded to the next lower multiple of $500. (iii) Indexing of catch-up limitationIn the case of any taxable year beginning in a calendar year after 2023, the $1,000 amount under subparagraph (B)(ii) shall be increased by an amount equal to—(I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2022” for “calendar year 2016” in subparagraph (A)(ii) thereof.