6. Deduction limits: Traditional IRAs
Contributions are not limited by how much the account holder earns. However, if during the year either the taxpayer or his or her spouse was covered by a retirement plan at work, the deduction may be phased out. The 2021 phase-out range for single taxpayers is $66,000 to $76,000, up from $65,000 to $75,000; for married couples, $105,000 to $125,000, up from $104,000 to $124,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is $198,000 and $208,000, up from $196,000 and $206,000, and for a married individual filing a separate return who is covered by a workplace retirement plan, it is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
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