How much of my Traditional IRA contribution is deductible?
For any Traditional IRA deduction, you must have earned income. If you do, there are a couple of possibilities. If you (and a jointly-filing spouse) didn’t contribute to an employer-sponsored retirement plan, like a 401 (k), or self-employed retirement plan your entire Traditional IRA contribution is deductible.
But if you (and/or your jointly-filing spouse) contributed to an employer-sponsored or self-employed retirement plan in 2016, the amount you can deduct will depend on your tax filing status and modified adjusted gross income (MAGI).
Note that if your MAGI is:
- Below the phase-out range—your entire contribution is deductible.
- Above the phase-out range—you can’t deduct anything.
- Within the phase-out range—you can make a partial deduction (we’ll calculate this for you).
Here are the MAGI phase-out ranges for tax year 2016 if you participated in another retirement plan:
- Single, Head of Household, or Married Filing Separately, the phase-out range is $61,001 – $70,999
- Married Filing Jointly or Qualified Widower, the phase-out range is $98,001 – $117,999
- Married Filing Separately (but lived with your spouse), the phase-out range is $0 – $10,000
If you didn't participate in another retirement plan, but your spouse did, and you're:
- Filing jointly, the phase-out range is $184,001 – $193,999
- Filing separately, the phase-out range is $0 – $10,000