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.
Thanks.
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.
Thanks. I found the link to the IRS page on deduction limits for Roths, but didn't find the one for regular IRAs.
FWIW, I see a buzillion financial and tax preparation sites that say there is no income limit for contributing to a traditional IRA.
I presume the reason the IRS site does not expressly speak to this is because the IRC does not expressly state an income limit.
I agree there are limits, based on income, to how much of one's traditional IRA contribution is tax deductible.
I trust you saw IRS sites like these:
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