LCS&Z, CPA & Consulting Firm : Quick Tax Facts

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QUICK TAX FACTS

IRA - DEDUCTION & PHASEOUT
Form 1040, Form 8606, Publication 590
TRA 1997, EGTRRA 2001

NOTE:
Contribution limits do not include the over age 50 catch-up contribution. See Retirement Plan Contributions chart.

Overall contribution limit for traditional and Roth IRAs:

If you are not married filing jointly:

smaller of $4,000 ($5,000 if age 50 older at the end of 2006) or your taxable compensation.

If you are married filing jointly:

generally $4,000 ($5,000 if age 50 or older at the end of 2006) and your spouse’s contribution limit is $4,000 ($5,000 if age 50 or older at the end of 2006) as well.

If the combined taxable compensation of both you and your spouse is less than $8,000 ($9,000 if one spouse is 50 or older at the end of 2006; $10,000 if both spouses are 50 or older at the end of 2006), see Pub. 590 for special rules.

This limit does not apply to employer IRA contributions to a SEP or SIMPLE IRA.

The amount you can contribute to a Roth IRA may also be limited by your modified AGI.

Income phaseouts do not limit traditional IRA contributions, only deductibility.

Non deductible contributions are reported on form 8606.

The information provided in this "Quick Tax Facts" section is intended as a general guideline only. For the most detailed and up-to-date information, contact us at 518-783-7200, or visit www.irs.gov.