Modified AGI Limit for Traditional IRA Contributions Increased
For 2008, if you are covered by a retirement plan at work, your
deduction for contributions to a traditional IRA is reduced
(phased out) if your modified adjusted gross income (AGI) is:
More
than $85,000 but less than $105,000 for a married couple filing
a joint return or a qualifying widow(er),
More than $53,000 but less than $63,000 for a single individual
or head of household, or
Less than $10,000 for a married individual filing a separate
return.
If you either live with your spouse or file a joint return,
and your spouse is covered by a retirement plan at work, but
you are not, your deduction is phased out if your AGI is more
than $159,000 but less than $169,000. If your AGI is $169,000
or more, you cannot take a deduction for contributions to a
traditional IRA.
For 2009, if you are covered by a retirement plan at work, your
deduction for contributions to a traditional IRA is reduced
(phased out) if your modified AGI is:
More
than $89,000 but less than $109,000 for a married couple filing
a joint return or a qualifying widow(er),
More than $55,000 but less than $65,000 for a single individual
or head of household, or
Less than $10,000 for a married individual filing a separate
return.
If you either live with your spouse or file a joint return,
and your spouse is covered by a retirement plan at work, but
you are not, your deduction is phased out if your modified AGI
is more than $166,000 but less than $176,000. If your modified
AGI is $176,000 or more, you cannot take a deduction for contributions
to a traditional IRA.
