Hi All -
I got a query from someone who thinks his income is too high to make a contribution to a traditional IRA. As far as I can tell, there is no
income limit for that, and that IRA contributions are also deductible
if you are in AMT territory. Do I have that right?
I do know that there's an income limit for Roth IRAs, and I suspect
that's what the person is thinking of. But I'd appreciate your input
to make sure I'm not missing something.
Stuart O. Bronstein wrote:
I got a query from someone who thinks his income is too high to
make a contribution to a traditional IRA. As far as I can tell,
there is no income limit for that, and that IRA contributions are
also deductible if you are in AMT territory. Do I have that
right?
I do know that there's an income limit for Roth IRAs, and I
suspect that's what the person is thinking of. But I'd appreciate
your input to make sure I'm not missing something.
For traditional IRAs, there is no income limit on being able to
contribute. But there may be income limits on being able to deduct
the amount from income, depending on whether taxpayer or their
spouse is covered by a retirement plan at work. https://www.irs.gov/retirement-plans/ira-deduction-limits
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