
A. If you are covered by a retirement plan at work, such as a 401(k) or a 403(b) plan, then your IRA contributions might be fully deductible, partially deductible, or not deductible at all. The answer depends on your income level for the year (as measured by a modified adjusted gross income formula).
For 2014 the phaseout range for deducting an IRA contribution when you are covered by a retirement plan at work are as follows:
- For single filers: $60,000 to $70,000
- For head of household filers: $60,000 to $70,000
- For married couples filing jointly and the spouse who makes the IRA contribution is covered by a workplace retirement plan: $96,000 to $116,000
- For married couples filing jointly and the spouse who makes the IRA contribution is not covered by a workplace retirement plan and is married to someone who is covered: $181,000 to $191,000.
- For married couples filing separately: $0 to $10,000