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.

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