01.Core Concepts

A full deduction is allowed in two general situations: A worker who is not an active participant in an employer’s retirement plan for any part of the year can make a fully deductible IRA contribution up to the annual maximum limit Even if the worker is actively participating in an employer’s retirement plan, the IRA contribution is fully or partially deductible if the modified adjusted gross income is below certain threshold limits Taxpayers with incomes that exceed the phase-out limits can contribute to a non-deductible IRA ‹#›