Traditional IRA Annual Contribution
Amounts and Tax Deductibility
Maximum Allowable Contribution Amounts
The chart below briefly describes the
maximum allowable contribution amount
to a Traditional IRA
for the category that applies to your household. Your eligibility
to contribute to a Traditional IRA is also subject to age
and income limits. You
cannot contribute to a Traditional
IRA if you are over age 70-½.
| Allowable contribution amounts |
2007
and 2008 |
| Individuals under
age 50 |
$4,000 |
| Individuals age 50
and older |
$5,000 |
| Married under age
50 (both) |
$8,000 |
| Married age 50 and
older (both) |
$10,000 |
-OR- 100% of earned
income
You may contribute simultaneously
to a Traditional IRA and a Roth IRA (subject to
eligibility)
as long as the total contributed to
all (Traditional or Roth) IRAs totals no more than
$4,000
for each of tax year 2007 and 2008 ($5,000
age 50 and older).
Tax Deductibility of IRA Contributions
Fully deductible if
neither you nor your spouse participates in an employer-sponsored
retirement plan such as 401(k), 403(b) or pension plan.
Deductibility is limited if you
or your spouse participate in an employer-sponsored
retirement plan. Refer to the chart below to figure
your deduction.
Tax
Deductibility of IRA Contributions (Tax Year 2007 and 2008)
for
participants in employer-sponsored retirement plans |
| Modified
Adjusted Gross Income |
Maximum
Deduction for 2007-2008 for Individuals Under Age 50 |
Maximum
Deduction for 2007-2008 for Individuals Age 50 and Older |
| Single
Filer |
Married
Filing Jointly |
Married
Filing Separately |
| You Participate |
Spouse
Participates |
$52,000
& under |
$83,000
& under |
$156,000
& under |
$0 |
$4,000 |
$5,000 |
|
| $53,000 |
$85,000 |
$157,000 |
$1,000 |
$3,600 |
$4,500 |
|
| $54,000 |
$87,000 |
$158,000 |
$2,000 |
$3,200 |
$4,000 |
|
| $55,000 |
$89,000 |
$159,000 |
$3,000 |
$2,800 |
$3,500 |
|
| $56,000 |
$91,000 |
$160,000 |
$4,000 |
$2,400 |
$3,000 |
|
| $57,000 |
$93,000 |
$161,000 |
$5,000 |
$2,000 |
$2,500 |
|
| $58,000 |
$95,000 |
$162,000 |
$6,000 |
$1,600 |
$2,000 |
|
| $59,000 |
$97,000 |
$163,000 |
$7,000 |
$1,200 |
$1,500 |
|
| $60,000 |
$99,000 |
$164,000 |
$8,000 |
$800 |
$1,000 |
|
| $61,000 |
$101,000 |
$165,000 |
$9,000 |
$400 |
$500 |
|
$62,000
& over |
$103,000
& over |
$166,000
& over |
$10,000
& over |
$0 |
$0 |
|
|