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  • Income Limit for IRA Contribution

    From Stuart O. Bronstein@21:1/5 to All on Mon Nov 7 16:41:23 2022
    Hi All -

    I got a query from someone who thinks his income is too high to make a contribution to a traditional IRA. As far as I can tell, there is no
    income limit for that, and that IRA contributions are also deductible
    if you are in AMT territory. Do I have that right?

    I do know that there's an income limit for Roth IRAs, and I suspect
    that's what the person is thinking of. But I'd appreciate your input
    to make sure I'm not missing something.

    Thanks.

    --
    Stu
    http://DownToEarthLawyer.com

    --
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  • From Tom Russ@21:1/5 to Stuart O. Bronstein on Mon Nov 7 19:19:47 2022
    On Monday, November 7, 2022 at 1:45:19 PM UTC-8, Stuart O. Bronstein wrote:
    Hi All -

    I got a query from someone who thinks his income is too high to make a contribution to a traditional IRA. As far as I can tell, there is no
    income limit for that, and that IRA contributions are also deductible
    if you are in AMT territory. Do I have that right?

    I do know that there's an income limit for Roth IRAs, and I suspect
    that's what the person is thinking of. But I'd appreciate your input
    to make sure I'm not missing something.

    For traditional IRAs, there is no income limit on being able to contribute.
    But there may be income limits on being able to deduct the amount from
    income, depending on whether taxpayer or their spouse is covered by a retirement plan at work. https://www.irs.gov/retirement-plans/ira-deduction-limits

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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  • From Stuart O. Bronstein@21:1/5 to Tom Russ on Tue Nov 8 00:33:15 2022
    Tom Russ <[email protected]> wrote:
    Stuart O. Bronstein wrote:

    I got a query from someone who thinks his income is too high to
    make a contribution to a traditional IRA. As far as I can tell,
    there is no income limit for that, and that IRA contributions are
    also deductible if you are in AMT territory. Do I have that
    right?

    I do know that there's an income limit for Roth IRAs, and I
    suspect that's what the person is thinking of. But I'd appreciate
    your input to make sure I'm not missing something.

    For traditional IRAs, there is no income limit on being able to
    contribute. But there may be income limits on being able to deduct
    the amount from income, depending on whether taxpayer or their
    spouse is covered by a retirement plan at work. https://www.irs.gov/retirement-plans/ira-deduction-limits

    Thanks. I found the link to the IRS page on deduction limits for
    Roths, but didn't find the one for regular IRAs.


    --
    Stu
    http://DownToEarthLawyer.com

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From [email protected]@21:1/5 to All on Wed Nov 9 10:56:31 2022
    FWIW, I see a buzillion financial and tax preparation sites
    that say there is no income limit for contributing to a
    traditional IRA.

    I presume the reason the IRS site does not expressly speak
    to this is because the IRC does not expressly state an
    income limit.

    I agree there are limits, based on income, to how much
    of one's traditional IRA contribution is tax deductible.

    I trust you saw IRS sites like these: https://www.irs.gov/retirement-plans/ira-deduction-limits https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

    Notice that the second IRS site speaks to income limits for
    Roth IRA contributionss. Where it speaks of traditional IRAs,
    the site is silent on the subject of income limits for contributions.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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    * Origin: fsxNet Usenet Gateway (21:1/5)