TO CLAIM A TAX DEDUCTION for your traditional IRA contribution, much hinges on whether you are covered by a retirement plan at work. That doesn’t come into play with a Roth IRA. Instead, all that matters is your income.
If you are single or head of household and you have enough earned income, you can fully fund a Roth IRA in 2017 if your modified adjusted gross income is less than $118,000. The amount you can contribute is phased out if your income is between $118,000 and $133,000. Above $133,000, no contribution is allowed. For 2018, the phaseout range is $120,000 to $135,000.
If you are married filing jointly, your ability to fund a Roth phases out if your combined income is between $186,000 and $196,000 in 2017 and between $189,000 and $199,000 in 2018.
What if you’re eligible to make only a partial Roth contribution of, say, $3,000 out of a possible $5,500? You can put the remaining $2,500 in a traditional IRA, though your contribution won’t necessarily be tax-deductible.
Previous: Deducting IRA Contributions
Blog: Free for All