Can I Deduct IRA Contributions?

Contributing to an Individual Retirement Account is a smart savings move, and in many cases those contributions are tax deductible. Contributions to a traditional IRA may be deductible depending on your income, your filing status, and whether you or your spouse are covered by a workplace retirement plan. If neither you nor your spouse participates in a work retirement plan, contributions up to the annual limit are fully deductible regardless of income. Contributions to a Roth IRA are not deductible since the benefit comes on the other end when withdrawals in retirement are tax free. The annual contribution limit applies across all IRAs you own, so spreading money between different accounts does not increase how much you can deduct.