I see that contributing to my Traditional IRA does not help me reduce my Gross Adjusted Mean Income. We need to make less than $118,000. Correct?

[challoran8]

I thought contributing to the IRA reduces the Adjusted Gross Income

[KenH1 · Accepted solution]

You are correct if you are filing married filing jointly and "covered" by an employer's retirement plan.

You can always contribute to a traditional IRA, regardless of your income or coverage by an employer plan.

The deductibility depends on your income, filing status, and employer coverage.

These links provide the most recent income limits for deducting IRAs

IRA deductibility - covered by employer plan (the "retirement plan" box on your W2 is checked)

IRA deductibility - NOT covered by employer plan (the "retirement plan" box on your W2 is NOT checked)

The income limit for Roth IRA's (for MFJ) is $194,000, but the tax benefit comes later.

Hope this helps.