MinhT1
Expert Alumni

Retirement tax questions

Assuming that your MAGI is $121,722, the formula is as follows:

 

Non Deductible part = ((121,722 - 116,000) / 20,000) x 13,000 = 3,719

 

Deductible IRA = 13,000 - 3,791 = 9,209

 

Please note that the number to be used is the Modified AGI, and not the AGI.

 

For the calculation of the Modified MAGI, see the worksheet 1-1 on page 15 of IRS Publication 590-A.

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