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The Financial Planning Center Comprehensive Financial Planning
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Traditional & Conduit IRA Contribution & Deduction Limits for 2007 |
Use this section to determine if an individual's $4000.00 contributions is a fully deductible, partially deductible, or not deductible. Allowable deductions to a Traditional IRA are determined by an individuals income (Modified AGI), filing status, age, and retirement plan by an employer.
Did you know you can still make contributions to a Traditional IRA: (1) If you are covered by a retirement plan at work, (2) If you are a non-working spouse, or (4) Regardless of your income? However, in the tax year you attain age 70 1/2, you can no longer contribute to a Traditional IRA. In addition, required minimum distributions from a Traditional IRA must start by April 1 of the year following the year in which you reach age 70 1/2.
Additional Benefits:
You may be able to receive a tax credit in addition to a tax deduction when contributing to your Traditional IRA.
Where you over the age of 50 before 2007? You may qualify to contribute and deduct an additional $1,000 ($5,000 max) to your Traditional IRA
Click on following links:
Instructions:
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If your Modified AGI* is: |
If You Are Covered by a Retirement Plan at Work and Your Filing Status is: |
If You Are Not Covered by a Retirement Plan at Work and Your Filing Status is: |
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At Least |
But Less Than |
Single
Head of Household |
Married Filing Jointly (even if your spouse
is or is not covered by a plan at work)
Qualifying Widow(er) |
Married Filing Separately** | Married Filing Jointly (and your spouse is covered by a plan at work) |
Single
Head of Household
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Married Filing Jointly or Separately (and
spouse
is not covered by a plan at work)
Qualifying Widow(er) |
Married Filing Separately (and your spouse is covered by a plan at work)*** |
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Deduction You Can Take |
Deduction You Can Take | Deduction You Can Take | Deduction You Can Take | Deduction You Can Take | Deduction You Can Take | Deduction You Can Take | ||
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$0.01 $10,000 $10,000 $52,000 $52,000 $62,000 $62,000 $83,000 $83,000 $103,000 $103,000 $156,000 $156,000 $166,000 $166,000 or over |
Full Full Partial None None None None None |
Full Full Full Full Partial None None None |
Partial None None None None None None None |
Full Full Full Full Full Full Partial None |
Full Full Full Full Full Full Full Full |
Full Full Full Full Full Full Full Full |
Partial None None None None None None None |
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* Modified AGI (adjusted gross income). For Form 1040A, it is the amount on line 15 increased by any excluded qualified bond interest shown on Form 8815, Exclusion of Interest from Series EE and I U.S. Savings Bonds Issued after 1989, and certain tax-exempt income amounts. For Form 1040, it is the amount on line 33, figured without taking into account any IRA deduction or any foreign earned income exclusion and foreign housing exclusion (deduction), any student loan interest deduction, any qualified bond interest exclusion from Form 8815, and certain tax-exempt income amounts. ** If you did not live with your spouse at any time during the year, your filing status is considered, for this purpose, as Single (therefore your IRA deduction is determined under the "single" column). *** You are entitled to the full deduction if you did not live with your spouse at any time during the year. |
Note! Social Security Recipients If all the following apply--you received social security benefits, taxable compensation, made contributions to your traditional IRA, "and" you or your spouse were covered by an employer retirement plan, use the worksheet in appendix B in the IRS Publication 590 to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. |
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