Are Traditional IRA contributions tax-deductible?
One of the benefits of contributing to a Traditional IRA is that the contribution may be tax deductible. Whether a contribution or a portion of a contribution is deductible depends on active participation (participating in or receiving contributions) in an employer-sponsored retirement plan, marital status, and modified adjusted gross income (MAGI).
IRA Deductibility Phase-Out Ranges for Active Participants
|Filing Status||2021 MAGI|
|Single and Head of Household||$66,000-$76,000|
|Married Filling a Joint Tax Return||$105,000-$125,000|
|Non-active Participant Married to an Active Participate||$198,000-$208,000|
|Married Filing Separate Tax Return||$0-$10,000|