Traditional IRA Deductibility Ranges

April 4th, 2007  |  Published in 401K, IRA  |  1 Comment

If you thought that anyone could contribute to a Traditional IRA and then deduct that contribution on their taxes, you’d be wrong. If your employer has a retirement plan, like a 401(k), then your contribution is not fully deductible unless you fall underneath the income phase out ranges.

In fact, here are the tables:

YearSingleMarried Filing Jointly
2006$50,000-$60,000$75,000-$85,000
2007$50,000-$60,000$80,000-$100,000

There are two exceptions, if you are married filing jointly and only one of you has a retirement plan, the phase out is $150k to $160k (if neither has one, there is no phaseout). If you are married filing separately and you have a plan, the phase out is a paltry $0 to $10k.

  

Responses

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    April 6th, 2007 at 11:32 pm (#)

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