Q:

What are IRA deduction limits?

A:

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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