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Traditional IRA
If you’re under age 70 ˝, and have earned income, in 2007 you can contribute up to $4,000 to a Traditional
IRA ($5,000 if you are over age 50). Your contribution is tax deductible depending upon:
- Your Income (Modified AGI).
- Your tax filing status (single or married).
- Whether or not you’re covered by an employer-sponsored retirement plan (e.g. 401k).
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If you’re Single, contributions are deductible as follows
| Employer Retirement Plan? |
Modified AGI-2007 |
Tax Deduction |
| No |
Any Amount |
Full |
| Yes |
Under $52,000 |
Full |
| $52,000 to $61,999 |
Partial |
| $62,000 or more |
None |
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If you’re Married, contributions are deductible as follows
| Employer Retirement Plan? |
Modified AGI 2007 |
Tax Deduction |
| No. Neither Spouse. |
Any Amount |
Full |
| Yes. Both Spouses Covered. |
Under $83,000 |
Full |
| $83,000 to $103,000 |
Partial |
| $103,000 or more |
None |
Yes. One Spouse Covered.
Contribution for Covered Spouse. |
Under $83,000 |
Full |
| $83,000 to $103,000 |
Partial |
| $103,000 or more |
None |
Yes. One Spouse Covered.
Contribution for Non-covered Spouse |
Under $156,000 |
Full |
| $156,000 to $165,999 |
Partial |
| $166,000 or more |
None |
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