A. Here are a 3 possible scenarios and see which one fits you -
1. If you’re not covered by an employer sponsored retirement plan, you can make an IRA contribution of up to $5,500 per year ($6,500 if you’re 50 or older) that is fully deductible regardless of your income.
2. If you’re covered by an employer retirement plan, your IRA deductibility is determined by your income, and looks like this:
- Single—with a modified adjusted gross income (MAGI) of between $63,000 and $73,000, after which the contribution is completely non-deductible
- Married filing jointly—with a MAGI of between $101,000 and $121,000, after which the contribution is completely non-deductible
3. If you’re not covered by an employer plan yourself, but your spouse is, the income phase-out looks like this:
- Filing jointly—with a MAGI of between $189,000 and $199,000, after which the contribution is completely non-deductible