Traditional IRA Contribution Effect on MAGI

Forum|Forum|4 years ago
February 10, 2022
1 reply
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My MAGI income for 2021 is slightly over what looks like one of the IRMAA cliffs. If I make a traditional IRA contribution this spring for 2021, will that effectively lower my MAGI? Are there any other tools that might be used to lower the MAGI for last year?

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Best answer by MinhT1

If you are eligible for a deductible IRA contribution and you do contribute by April 18, 2022, this could lower your MAGI.

The amount of deductible IRA contribution depends on your filing status, your MAGI and whether if you are covered by a retirement plan at work (for example a 401(k) plan).

If you are covered by a retirement at work, please see this IRS document.

If you are not covered, please see this IRS document.

MinhT1Answer

Level 15

If you are eligible for a deductible IRA contribution and you do contribute by April 18, 2022, this could lower your MAGI.

The amount of deductible IRA contribution depends on your filing status, your MAGI and whether if you are covered by a retirement plan at work (for example a 401(k) plan).

If you are covered by a retirement at work, please see this IRS document.

If you are not covered, please see this IRS document.

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