Question

Carole, age 38, is single and works as a physical therapist. She is covered by her employer’s retirement plan, and contributes $5,500 to her conventional IRA. If her AGI is $63,000, how much IRA contribution can she deduct for tax purpose?

Answer 1

If you are not married (and not a qualifying widower) and

you are covered by a retirement plan at work, then you can

take a full IRA deduction of up to your contribution limit, or

the amount of your taxable compensation, whichever is less,

as long as your adjusted gross income is $62,000 or less for

2017 and $63,000 or less for 2018.

What are the contribution limits for a

person who is not age 50 or older?

Tax Year Amount

2017 $5,500

2018 $5,500

She can deduct full contribution of $5,500 for tax purpose.