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LearnFAQRetirement Planning

When is a Traditional IRA contribution actually tax-deductible?

Answer

Your Traditional IRA deduction depends on whether you (or your spouse) are covered by a workplace retirement plan and on your income. If neither you nor your spouse has a 401(k) or similar plan, your full contribution is deductible regardless of income. If you are covered by a workplace plan, the 2025 deduction phases out between $79,000 and $89,000 of MAGI for single filers, and $126,000 to $146,000 for married filing jointly. If only your spouse is covered, your deduction phases out between $236,000 and $246,000. Above these ranges you can still contribute, but it becomes a nondeductible contribution that you must track on Form 8606. Knowing your coverage status first is the key step before assuming the deduction.

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