Mr. and Mrs. Pointer, ages 45 and 46, each contributed the maximum $6,000 to their traditional IRAs. Each spouse actively participates in an employer-sponsored qualified retirement plan. Compute the deductible IRA contribution on their joint return if their AGI before such deduction is $112,970.

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For taxpayers who are covered by a retirement plan at work, the deduction for contributions to a traditional IRA is phased out at certain income levels. For married couples filing jointly, where both spouses are covered by a retirement plan at work, the phase-out range for 2023 is $109,000 to $129,000. Since Mr. and Mrs. Pointer's AGI is $112,970, they are within the phase-out range. The exact amount of their deductible contribution is calculated based on where they fall within this range. Given the information, the correct calculation results in a deductible amount of $6,618. This takes into account the phase-out rules and their specific AGI.

Mr and Mrs