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IRA Tax
Deductibility Phase-Out Ranges
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This
chart is only used for those who are active in a company
retirement plan. If you are not
covered by a company plan,
but your spouse is, the phase-out range for you is
$150,000-$160,000. If
you live with your spouse, file married-separate and you
are active in a company retirement plan, your
phase-out range is $0-$10,000.
If you are single
and not covered by a company plan or are
married and neither you nor your spouse is covered by a
company plan, you can make a tax deductible IRA
contribution regardless of your income. |
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Single
or |
Both
Participating |
One
Not Participating |
| Year |
Head
of Household |
Married-Joint |
Married-Joint |
|
MAGI* |
MAGI* |
MAGI* |
| 2001 |
$33,000
- $43,000 |
$53,000
- $63,000 |
$150,000
- $160,000 |
| 2002 |
$34,000
- $44,000 |
$54,000
- $64,000 |
$150,000
- $160,000 |
| 2003 |
$40,000
- $50,000 |
$60,000
- $70,000 |
$150,000
- $160,000 |
| 2004 |
$45,000
- $55,000 |
$65,000
- $75,000 |
$150,000
- $160,000 |
| 2005 |
$50,000
- $60,000 |
$70,000
- $80,000 |
$150,000
- $160,000 |
| 2006 |
$50,000
- $60,000 |
$75,000
- $85,000 |
$150,000
- $160,000 |
| 2007 |
$52,000
- $62,000 |
$83,000
- $103,000 |
$156,000
- $166,000 |
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| *Modified
Adjusted Gross Income (MAGI) |
To
determine your MAGI for IRA deductibility, start with
your Adjusted Gross Income (AGI) and add back
IRA deduction and student loan interest deductions.
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Full
IRA deductibility if your MAGI
is less than the range (ie, $75,000 married both
participating in '06).
Reduced IRA deductibility if
MAGI is within range (proportionately).
Non-deductible IRA if
MAGI is greater than range.
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Maximum
contribution in 2006 & 2007 for either an IRA
(non-deductible or deductible) or ROTH-IRA is $4,000 plus
$1000 age 50 catch-up. You can't do maximum for
both, but you can do some of each up
to a total of $4,000 plus $1000.
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