Traditional IRA Deduction question- Marriage

[purplepear]

My boyfriend and I have been dating for 4 years, plan on being life partners, and have recently started to toss around the idea of actually getting married. Mostly for pragmatic & legal protection reasons.

Along those lines, I was looking at the Traditional IRA Deduction income limits for married couples, and I'm wondering if I understand this correctly. (For reference: http://www.irs.gov/Retirement-Plans/2015-IRA-Deduction-Limits-Effect-of-Modified-AGI-on-Deduction-if-You-Are-Covered-by-a-Retirement-Plan-at-Work)

Currently, my boyfriend and I are both working, make a similar income, both max out our 401Ks, both max out HSAs, and are starting to contribute to traditional IRAs.

Unmarried Scenario:

• Let's say each of us make $80K
• Individual MAGI = 80K - 18K (401k) - 3.3K (HSA) = $58.7K
• Each of us is under the limit and can deduct the full $5,500 IRA contribution. Yay!

Married Scenario:

• Total MAGI = $58.7K x 2 = $117.4K
• As a couple, we are over the MAGI limit and neither of us can deduct our IRA contributions. :(

Is my understanding correct?

[chicagomeg]

Yes. Most MFJ income caps are 2x the single ones, this is just an odd anomaly in the tax code.

[forummm]

There are a bunch of ways that being married can increase or decrease your taxes. It's complicated.

Here's a cool graphic looking at tax amounts for different scenarios:
http://www.nytimes.com/interactive/2015/04/16/upshot/marriage-penalty-couples-income.html

[purplepear]

There are a bunch of ways that being married can increase or decrease your taxes. It's complicated.

Here's a cool graphic looking at tax amounts for different scenarios:
http://www.nytimes.com/interactive/2015/04/16/upshot/marriage-penalty-couples-income.html

Sweet graphic. Thanks!

[forummm]

There are a bunch of ways that being married can increase or decrease your taxes. It's complicated.

Here's a cool graphic looking at tax amounts for different scenarios:
http://www.nytimes.com/interactive/2015/04/16/upshot/marriage-penalty-couples-income.html

Sweet graphic. Thanks!

Glad to be of service <tip of the top hat>