What Are IRA Deduction Limits?


Quick Answer

Traditional IRA deductions are limited to the maximum of the total contribution made, according to the Internal Revenue Service. For the 2015 tax year, contributions are limited to $5,500, and $6,500 for adults over the age of 50. Roth IRA contributions are not deductible.

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Full Answer

Full deductions are limited based on participation in employer-sponsored retirement plans and adjusted gross income, according to the IRS. All filers who have no employer coverage are permitted to take a full deduction in 2015. Individuals who have a spouse covered under an employee retirement plan are eligible to take a limited deduction starting at an AGI of $183,000 and receive no deduction over $193,000. For couples who are both involved in a retirement plan at work, the deductions are no longer available over an AGI of $118,000 with phase outs beginning at $98,000. Single and head of household individuals are disqualified from taking a deduction with an AGI over $71,000 with phase outs beginning at $61,000.

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