Author Topic: AGI requirements for deductions from an IRA  (Read 980 times)

finitelement

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AGI requirements for deductions from an IRA
« on: March 02, 2015, 09:14:49 PM »
I'm a little confused. Is the required 61k MAGI requirement for 2015 after your IRA contribution is deducted from your wages? If I make 65k salary, then I can still deduct trad IRA?

rpr

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Re: AGI requirements for deductions from an IRA
« Reply #1 on: March 02, 2015, 09:19:15 PM »
finitelement: This is MAGI before IRA deduction. Do you have other pre-tax deductions such as health insurance premiums and 401k contributions? Those can decrease your MAGI to get below the limit. 

finitelement

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Re: AGI requirements for deductions from an IRA
« Reply #2 on: March 02, 2015, 09:32:25 PM »
Ok that makes sense. I'm just trying to get a hold on it for next year. I will be maxing my traditional 401k, along with my traditional IRA, but want to max sure there's incentive for doing traditional vs Roth.  My total income (line 7 of my 1040) was  56,456. I recently got a raise, and only recently was I able to put into my 401k (the company recently changed that policy, it used to require 1 year of employment).  Deductions was 5500 towards trad IRA. Taxable income ended up being only 34k, and brought me to 15 percent tax bracket. Should I still be doing all traditional even though this year I'll be maxing out 401k contributions?