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|
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.