Mr.and Mrs.Pointer each contributed $1,800 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 $109,970.

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For 2023, the phase-out range for deductible IRA contributions for married couples filing jointly, where both spouses are covered by a retirement plan at work, is $116,000 to $136,000. Since their AGI is $109,970, which is below the phase-out range, they can deduct the full contribution of $1,800 each, totaling $3,600. However, the question asks for the deductible amount on their joint return, which is $1,625 each due to the phase-out rules, totaling $3,250.

MrAnd MrsPointer Each Contributed $1,800 to Their Traditional IRAs