My wife and I will be making around $143,000 this year. My wife is disabled, and $48,000 of it is from past and current Social Security disability paid in the same year. (Approx. $38,000 was paid from previous 2 years, and I know there is a tax scale on it for each year. She also received about $35,000 from a LTD settlement, fully taxable.)
My 401K contributions maxed out at $24,000. Both my wife and I are over 50 and would like to contribute $5,500 each to traditional IRAs to reduce our tax burdan, based on my income and her LTD settlement. Is this possible?