How are contributions applied to tax deductions for IRAs?
How contributions are reported and applied to your taxes may vary. It is important to discuss any and all considerations with a tax professional.
Roth IRA
Contributions to a Roth IRA are never tax-deductible as contributions are made with after tax dollars.
Traditional IRA
Contributions to a Traditional IRA may be tax deductible depending on whether or not you (and/or your spouse, if you are married) are covered by an employer’s retirement plan.
- Retirement plan at work: Your deduction may be limited if you (or your spouse, if you are married) are covered by a retirement plan at work and your income exceeds certain levels.
- No retirement plan at work: Your deduction is allowed in full if you (and your spouse, if you are married) aren’t covered by a retirement plan at work.
To determine the income range in which your deduction may be disallowed if you (and/or your spouse, if you are married) participate in a retirement plan at work, please see the following:
- IRA deduction if you are covered by a retirement plan at work - 2024
- IRA deduction if you are not covered by a retirement plan at work - 2024 (deduction is limited only if your spouse is covered by a retirement plan)
To learn more about IRA deductions, please visit the IRS website.
This material is for informational purposes only and is not intended to be a substitute for consultation with a qualified tax professional before making decisions related to your retirement account(s). Consult a tax professional for any and all considerations. Visit the IRS website for further information.