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:
| Year | Single | Married 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.
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Weekly Roundup – 04/06/07…
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