Deductible IRA
What is it? There are only two ways to deduct your IRA contributions: When you and your spouse are not covered in an employer?s retirement plan, or if your income falls within specified earnings limits. The contribution is fully deductible for a single taxpayer earning $31,000 in 1999; the deduction is phased out after $41,000 in earnings. Married couples filing jointly may earn up to $51,000 for the full deduction, which is phased out at $61,000. Those limits will rise to $50,000 to $60,000 for single taxpayers in 2005 and $80,000 to $100,000 for married couples. The maximum allowable contribution to an IRA is $2,000 per year as long as you earned at least that much during the year.Added By: Connor
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