Not All Traditional IRAs Are Deductible
Far too often, many individuals believe they will be able to deduct their IRA contributions. This statement is not always true.
Not all IRAs are deductible. There are a few requirements to deduct your IRA contributions. They are as follows:
- Are You Covered by a Workplace Retirement Plan?
- What is Your Tax Filing Status?
- What is Your Household Income?
Depending on your answers to those 3 questions, you may or may not be able to claim a tax deduction for an IRA contribution. For example, if you answer Yes to #1, MFJ to #2 and have over $123,000 for income in 2019 for #3, then you will not be able to deduct your IRA contribution. See the IRS.gov website here for a list of the IRA deduction requirements for those covered by a workplace retirement plan.
Please consult with a tax or financial advisor for further clarification.
Article by Matthew Ward
2019 – New Century Investments – All Rights Reserved