What Are the Income Restrictions to Qualify for a Deductible Traditional IRA?

People with earned income who are not in an employer-sponsored retirement plan, regardless of income level, may qualify for a tax deductible traditional IRA. Another group of taxpayers who can deduct a traditional IRA contribution in full are those with an employer-sponsored plan who have incomes in 2017 under $62,000 (single) and $99,000 (married couples filing jointly). The phase-out ranges (where contributions are limited in gradual steps as income increases) for singles and couples are $62,000 to $72,000 and $99,000 to $119,000, respectively.

Above these amounts, taxpayers can make a non-deductible, tax-deferred traditional IRA contribution. A working spouse who is not covered by an employer-sponsored plan may have a fully deductible traditional IRA even if the other spouse is in an employer-sponsored plan if the household adjusted gross income is less than $186,000 in 2017. The phase-out range for deductible contributions is from $186,000 to $196,000.

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