Hi all! My income just went up (yaay!) but my AGI is now in the phaseout AGI range for Traditional IRA (boo!-ish)
Single, HoH
Salary: 85,000
Deductions (401k, health insurance, FSA): 19,600
AGI: 65,400 (right?)
I tried looking following Pub 590-A: 71,000-65,400 = 5600 * 0.55 = $3,080 as the deduction. But the Fidelity calculator comes up with $3,640.
1. Which one is right and how do I arrive at that calculation?
2. Let's say the deduction is $3,000. Should I then only contribute $3,000 to a Traditional IRA and the other $2,500 to a Roth? Or am I mixing ideas? What's the optimum thing to do?