2008 Roth/Traditional IRA Phase-Out Limits For High Income Earners
For those people with increasing incomes, you may be wondering when either Roth IRAs and tax-deductible contributions to Traditional IRAs start being taken away from you. Here are the phase-out numbers for the 2008 tax year:
Roth IRA Phase-Out Limits
Once you reach the bottom of these phase-out ranges for your modified adjusted gross income (MAGI), your contribution limit of $5,000 starts getting reduced. At the top of the range, you can no longer contribute at all.
| Tax Filing Status | Phase-Out Range |
| Married filing jointly or qualifying widow(er) | $159,000 to $169,000 |
| Single, head of household | $101,000 to $116,000 |
| Married filing separately (and you lived with your spouse at any time during the year) | $0 to $10,000 |
Traditional IRA Deductibility Phase-Out Limits
Once you reach the bottom of these phase-out ranges, your full deduction starts getting reduced. At the top of the range, you can no longer deduct taxes on any contributions at all. This table assumes that both you and your spouse are covered by an employer retirement plan.
| Tax Filing Status | Phase-Out Range |
| Married filing jointly or qualifying widow(er) | $83,000 to $103,000 |
| Single or head of household | $52,000 to $62,000 |
| Married filing separately | $0 to $10,000 |
If you are single and are not covered by an employer retirement plan, or you’re married filing jointly and neither of you have a employer retirement plan, then there are no income limits for deductibility. If one spouse has a plan and the other does not, then the phase out range is $156,000 to $166,000.
Reference: See IRS Pub 590 for way too many details.
Find more in Retirement | 3/25/08, 4:39am | Trackback
March 25th, 2008 at 4:42 am
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