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Level 1
posted Aug 6, 2025 9:27:29 AM

MAGI max (and calculation) to contribute to IRA and get a tax deduction

To maximize the 8K for myself/spouse , IRA (non roth)  what is the MAX MAGI?    Note, I will put $9550 in to and HSA.    Current understanding - $126K + 16K (two IRA) + 9550 HSA = $151K.     Also will tax harvest stocks, and have a net -$500 to reduce AGI.

Thanks.

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1 Replies
Employee Tax Expert
Aug 6, 2025 10:09:56 AM

Limits to deducting traditional IRA contributions depend on retirement account coverage by you and/or your spouse via an employer, as well as your Modified Adjusted Gross Income (MAGI). There are no income limits to contribute to a traditional IRA, but the ability to deduct the contribution from your taxes may be limited or eliminated as your income rises. IRA contribution limits are $7,000 for those under 50 and $8,000 for those 50 and over in 2025. 

 

Here are the income limits for the 2025 tax year:

If you ARE covered by a retirement plan at work:

  • Single, Head of Household, or Married Filing Separately (if you didn't live with your spouse):

    • Full deduction if your MAGI is $79,000 or less.

    • Partial deduction if your MAGI is between $79,001 and $89,000.

    • No deduction if your MAGI is $89,000 or more.

  • Married Filing Jointly or as a Qualifying Widow(er):

    • Full deduction if your MAGI is $126,000 or less.

    • Partial deduction if your MAGI is between $126,001 and $146,000.

    • No deduction if your MAGI is $146,000 or more.

     

If you are NOT covered by a retirement plan at work, but your spouse IS covered:

  • Married Filing Jointly or as a Qualifying Widow(er):

    • Full deduction if your MAGI is $236,000 or less.

    • Partial deduction if your MAGI is between $236,001 and $246,000.

    • No deduction if your MAGI is $246,000 or more.

  • Married Filing Separately:
    • Partial deduction if your MAGI is less than $10,000.
    • No deduction if your MAGI is over $10,000.

If NEITHER you nor your spouse is covered by a retirement plan at work:

  • You can take a full deduction for your traditional IRA contributions regardless of your income.

 

Modified Adjusted Gross Income (MAGI) is calculated by adding back specific items to your Adjusted Gross Income (AGI):

1. Adjusted Gross Income (AGI): This is your total income from all sources (wages, interest, dividends, capital gains, retirement income, etc.) minus specific "above-the-line" deductions. Your AGI can be found on line 11 of your Form 1040.

2. "Add-back" items for traditional IRA deduction purposes: For the purpose of calculating your MAGI to determine the deductibility of traditional IRA contributions, you must add back the following items to your AGI:

    • Student loan interest deduction

    • Excluded foreign earned income and housing exclusions

    • Foreign housing deduction

    • Excluded U.S. savings bond interest

    • Excluded employer-provided adoption benefits