Modified AGI limit for traditional IRA contributions increased. For 2020, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:
More than $104,000 but less than $124,000 for a married couple filing a joint return or a qualifying widow(er),
More than $65,000 but less than $75,000 for a single individual or head of household, or
Less than $10,000 for a married individual filing a separate return.
Modified AGI limit for certain married individuals increased.
If you are married and your spouse is covered by a retirement plan at work and you aren’t, and you live with your spouse or file a joint return, your deduction is phased out if your modified AGI is more than $196,000 (up from $193,000 for 2019) but less than $206,000 (up from $203,000 for 2019). If your modified AGI is $206,000 or more, you can’t take a deduction for contributions to a traditional IRA.
Form 1040 or 1040-SR. https://www.irs.gov/pub/irs-pdf/p590a.pdf
Use this worksheet to figure your modified AGI for traditional IRA purposes. |
| 1. | Enter your adjusted gross income (AGI) from Form 1040 or 1040-SR, line 8b; or Form 1040-NR, line 35, figured without taking into account the amount from Schedule 1 (Form 1040 or 1040-SR), line 19; or Form 1040-NR, line 32 | 1. | _____ |
| 2. | Enter any student loan interest deduction from Schedule 1 (Form 1040 or 1040-SR), line 20; or Form 1040-NR, line 33 | 2. | _____ |
| 3. | Enter any tuition and fees deduction from Schedule 1 (Form 1040 or 1040-SR), line 21 | 3. | _____ |
| 4. | Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45 | 4. | _____ |
| 5. | Enter any foreign housing deduction from Form 2555, line 50 | 5. | _____ |
| 6. | Enter any excludable savings bond interest from Form 8815, line 14 | 6. | _____ |
| 7. | Enter any excluded employer-provided adoption benefits from Form 8839, line 28 | 7. | _____ |
| 8. | Add lines 1 through 7. This is your Modified AGI for traditional IRA purposes | 8. | _____ |
