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Learning, Sharing, and Teaching => Investor Alley => Topic started by: billy on November 21, 2018, 11:53:06 AM

Title: 2019 traditional ira income limit
Post by: billy on November 21, 2018, 11:53:06 AM

I contribute to my work 401k, my wife contributes to her 401k at work as well, we will gross 160,00 a year, married filing jointly.  Is the 2019 traditional ira income limit based is gross income or taxable income?  If I can't write off traditional ira, I should just to roth ira?  Thanks, go fire.

Title: Re: 2019 traditional ira income limit
Post by: walkwalkwalk on November 21, 2018, 12:13:53 PM

It is based on MAGI, (modified adjusted gross income) and yes, since you cannot deduct traditional IRA's I would go with Roth IRAs for both of you.

Title: Re: 2019 traditional ira income limit
Post by: terran on November 21, 2018, 04:10:30 PM

Here are the 2019 limits for those covered by a retirement plan at work: https://www.irs.gov/retirement-plans/2019-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work

Here is the definition of MAGI: https://www.irs.gov/publications/p590a#en_US_2017_publink1000230489

Title: Re: 2019 traditional ira income limit
Post by: jacoavluha on November 21, 2018, 10:20:30 PM

Do you and your spouse contribute the maximum allowed to your 401ks?

Title: Re: 2019 traditional ira income limit
Post by: billy on November 21, 2018, 10:34:13 PM

Yes we do, hers is matching as well. I myself also contribute to work pension and max out 457.