Deductible Contributions. The deduction you can take for contributions made to your traditional IRA depends on whether you or your spouse was covered for any part of the year by an employer retirement plan. Your deduction is also affected by how much income you had, by your filing status and possibly by social security benefits you received. IF your tax filing status is ... AND your modified AGI is ... THEN you can take ... IF your filing status is ... AND your modified AGI is ... THEN you can take ...
Deductible Contributions. Before-tax contributions as defined in Code section 72(o)(5)(A) and earnings thereon made to a prior plan by an Employee for taxable years prior to 1987 that are held, together with gain or loss pursuant to section 5.8(b) of the Plan, in the Employee's Deductible Contributions Account.
Deductible Contributions. Deductible Contributions shall not be accepted by the Plan. Any such Deductible Contributions made to the Plan for taxable years prior to 1987:
Deductible Contributions. A. The participant's contribution may be fully deductible if (i) in the case of an individual who is not married, the individual either has adjusted gross income ("AGI") that does not exceed the Applicable Dollar Amount or is not an active participant in an employer-maintained retirement plan for any part of the plan year ending with or within the taxable year; (ii) in the case of married taxpayers filing a joint return, either the couple has AGI that does not exceed the Applicable Dollar Amount or neither spouse is an active participant in an employer-maintained retirement plan for any part of the plan year ending with or within the taxable year; or (iii) in the case of a married taxpayer filing separately, either the taxpayer has AGI that does not exceed the Applicable Dollar Amount or neither spouse is an active participant in an employer-maintained retirement plan for any part of the plan year ending with or within the taxable year.
B. Each taxable year, an individual who (a) is a participant in an employer-maintained retirement plan or (b) is married and whose spouse is a participant in an employer-maintained retirement plan, may deduct an amount not to exceed the lesser of 100% of the individual's compensation or an amount that bears the same ratio to $2,000 as the taxpayer's AGI in excess of the Applicable Dollar Amount (or, in the case of a married couple filing a joint return, the couple's AGI in excess of the Applicable Dollar Amount) bears to $10,000. If a Spousal IRA has been established for a Participant's spouse, a higher amount shall be used in lieu of $2,000. For taxable years beginning before January 1, 1997, the amount shall be $2,250. For taxable years beginning on or after January 1, 1997, the amount shall be $4,000.
C. The Applicable Dollar Amount is (1) $25,000 in the case of an unmarried individual, (2) $40,000 in the case of a married couple filing a joint return, and (3) $0 in the case of a married individual filing separately. The dollar limit is rounded to the next highest $10 in the case of a limit that is not a multiple of $10. The IRA dollar limit for individuals whose AGI is not above the phaseout range shall not be less than $200. AGI shall be calculated without regard to any deductible IRA contributions made for the taxable year and without regard to the exclusion provided for certain foreign earned income, but with regard to any taxable social security benefits and with regard to any passive loss limitations. For purposes ...
Deductible Contributions. The limitations and restrictions on the deduction for contributions are as follows:
1. The maximum deductible contribution is the lesser of 100% of compensation or $2,000 (subject to the reduction described in paragraph D.3).
2. The maximum deduction is computed separately for each individual and is applied without regard to any community property law. However, if your spouse is not employed you may establish separate individual accounts for you and your spouse (an IRA established for your spouse is referred to as a "Spousal IRA"), and each year you may contribute to both accounts a total not to exceed the lesser of $2,250 or 100% of your compensation. For taxable years beginning on or after January 1, 1997, the $2,250 limitation shall be increased to $4,000. This contribution need not be divided equally between the two accounts, but not more than $2,000 may be contributed to one account.
3. The $2,000 (or the higher limitation set forth in paragraph D. 2 if there is also a Spousal IRA) deduction limit will be reduced if your federal adjusted gross income exceeds a certain amount ($40,000 for married individuals filing a joint return, $0 for married individuals filing separate returns, and $25,000 for single individuals) and you or your spouse is a participant in an employer maintained retirement plan. In such case, the $2,000 (or the higher limitation set forth in paragraph D. 2 if there is also a Spousal IRA) deduction limit will be reduced to an amount which bears the same ratio to $2,000 (or the higher limitation set forth in paragraph D. 2 if there is also a Spousal IRA) as your AGI in excess of the applicable dollar amount (described above) bears to $10,000. The dollar limit is rounded up to the next $10, and will not be less than $200 unless the limit is reduced to zero. The higher limitation set forth in paragraph D. 2 is $2,250 for taxable years beginning before January 1, 1997 and $4,000 for taxable years beginning on or after January 1, 1997.
4. No contribution is allowed for an individual during the taxable year in which he attains 701/2 or for a subsequent year.
5. No deduction is allowed with respect to a rollover contribution.
6. A divorced or legally separated spouse is allowed a deduction for contributions to an IRA. For this purpose, money received as alimony or separate maintenance pursuant to a decree of divorce or separation is considered compensation.
Deductible Contributions. 28 3.4 Voluntary After-Tax Contributions.......................................28 3.5 Rollover Contributions..................................................29 3.6
Deductible Contributions. Deductible Contributions shall not be accepted by the Plan. Any such Deductible Contributions made to the Plan for taxable years prior to 1987:
(a) Will continue to be recorded in a separate subaccount maintained for a Participant by the Plan Administrator and held by the Trustee;
(b) Will be invested and reinvested, as described in Article 5;
(c) Will be nonforfeitable at all times; and
(d) Will not be used to purchase life insurance.
Deductible Contributions. The amount of your deduction depends upon whether you are (or your spouse is) an active participant in any employer-sponsored retirement plan. If neither you nor your spouse is an active participant of any employer-sponsored retirement plan, the entire IXX contribution is deductible. If you are covered by an employer-sponsored retirement plan at any time during a year, you are an "active participant" for that year, even if you are not vested in your retirement benefit or are not currently making contributions to the plan. As an active participant to an employer-sponsored retirement plan, there may be limitations on the deductibility of your contribution to your IXX. This depends on the amount of your income. Your Form W-2 (or your spouse's W-2) should indicate if you were an active participant in an employer-sponsored retirement plan during a year. If you have a question, you should ask your employer or the plan administrator. In one situation, your spouse's "active participant" status will not affect the deductibility of your contributions to your IXX. This rule applies only if you and your spouse file separate tax returns for the taxable year and you lived apart at all times during the taxable year. The portion of your contribution that is deductible depends upon your filing status and the amount of your adjusted gross income ("AGI"). AGI is your gross income minus those deductions which are available to all taxpayers even if they don't itemize. Instructions to calculate your AGI are provided with your income tax Form 1040 or 1040A. The following table shows the deduction rules. FOR ACTIVE RETIREMENT PLAN -- PARTICIPANTS -------------------------------------------------------------------- IF YOU ARE MARRIED THEN YOUR IXX IF YOU ARE SINGLE FILING JOINTLY CONTRIBUTION IS -------------------------------------------------------------------- Up to Up to Fully $25,000 $40,000 Deductible -------------------------------------------------------------------- ADJUSTED Over $25,000 Over $40,000 Partly GROSS but less than but less than Deductible INCOME $35,000 $50,000 -------------------------------------------------------------------- $35,000 $50,000 Not and up and up Deductible -------------------------------------------------------------------- If your AGI falls in the partly deductible range, you must calculate the portion of your contribution that is deductible. To do this, multiply your contribution by a fraction in which the numerator is the amount by which y...
Deductible Contributions. If you are eligible to contribute to your IRA, the amount of the contribution for which you may take a tax deduction will depend upon whether you (or, in some cases, your spouse) are an active participant in an employer sponsored retirement plan. If you (and your spouse, if married) are not an active participant, your entire IRA contribution will be deductible. If you are an active participant (or are married to an active participant), the deductibility of your IRA contribution will depend on your modified adjusted gross income (MAGI) and your tax filing status for the tax year for which the contribution was made. MAGI is determined on your income tax return using your adjusted gross income but disregarding any deductible IRA contribution and certain other deductions and exclusions.
(1) Qualified pension, profit sharing, 401(k), or stock bonus plan
(2) Qualified annuity plan of an employer
(3) Simplified employee pension (SEP) plan
(4) Retirement plan established by the federal government, a state, or a political subdivision (except certain unfunded deferred compensation plans under IRC Sec. 457)
(5) Tax-sheltered annuity for employees of certain tax- exempt organizations or public schools
(6) Plan meeting the requirements of IRC Sec. 501(c)(18)
(7) Savings incentive match plan for employees of small employers (SIMPLE) IRA plan or a SIMPLE 401(k) plan
(1) Begin with the appropriate phase- out range maximum for the applicable year (specified below) and subtract your MAGI; (2) divide this total by the difference between the phase-out maximum and minimum; and (3) multiply this number by the maximum allowable contribution for the applicable year, including catch-up contributions if you are age 50 or older. The resulting figure will be the maximum IRA deduction you may take. For example, if you are age 30 with MAGI of $66,000 in 2017, your maximum deductible contribution is $5,400 (the
(1) Begin with the appropriate phase-out maximum for the applicable year (specified below) and subtract your MAGI;
(2) divide this total by the difference between the phase-out range maximum and minimum; and (3) multiply this number by the maximum allowable contribution for the applicable year, including catch-up contributions if you are age 50 or older. The resulting figure will be the maximum IRA deduction you may take. For example, if you are age 30 with MAGI of $107,000 in 2020, your maximum deductible contribution is $5,100 (the 2020 phase-out maximum of $124,000 minus your ...
Deductible Contributions. Your ability to deduct contributions to your IRA depends on whether you or your spouse are active participants in an employer- sponsored retirement plan, your modified adjusted gross income (modified AGI) and your filing status for the tax year in question. If you and, if applicable, your spouse were not active participants in an employer-sponsored retirement plan you generally can deduct your total Traditional IRA contributions up to the applicable contribution limit described above. If you are an active participant in an employer-sponsored retirement plan, the deductible IRA income phase-out limits are as follows:
