Save time with our cheat sheets, fact sheets, checklists & books!

March 30, 2009

Traditional IRA Deductibility 2008

Share on print
Print
Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
 Traditional IRA Deductibility – For Tax Year 2008
Notes:
  • 100% means $5,000, unless the individual will be at least age 50 by 12/31/2008, in which case it means $6,000.
  • For individuals who are eligible for partial contributions, a formula must be used to determine the amount that the individual is eligible to contribute
Tax-Filing Status
MAGI
Allowed Deduction Percentage Amount
Single
$53,000 or less
100%
$53,000 – $63,000
Partial
$63,000 or more
None
Married filing jointly. Person making contribution is an active participant
$85,000 or less
100%
$85,000- $105,000
Partial
$105,000 or more
None
Married filing jointly. Person making contribution is not an active participant, but is married to an active participant
$159,000 or less
100%
$159,000- $169,000
Partial
$169,000 or more
None
Married filing separately
Less than $10,000
Partial
$10,000 or more
None
Note: The chart should be read from the perspective of the person for whom the contribution is being made. For instance, if you are making the contribution and your status is married filing jointly, you would say “, I am married, and I am an active participant, so the $85,000 to $105,000 range would apply to me” or “I am married, and while I am not an active participant, I am married to an active participant, so the $159,000 to $169,000 range would apply to me”.
Regular contribution limit
$5,000
Catch-up contribution limit
$1,000
Contribution deadline
April 15, 2009
Age Limitation
No contributions are allowed for the year the taxpayer attains age 70 ½ and later.

For more on deducting IRA contributions, see the article Active Participant Status–Can You Deduct Your IRA Contribution?

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
Share on print
More

Keep Learning

Annual Benefit Limit

Definition The annual benefit limit for defined benefit plans is the lesser of: A) 100% of the participant’s average compensation for his or her highest

Be among the first to know when

IRA Rules
Change