Can I Deduct My IRA Contribution?

Traditional IRA contributions may be fully deductible, partially deductible, or non-deductible depending on your income and whether you (or your spouse) are covered by a workplace retirement plan. If neither you nor your spouse has a retirement plan at work, you can deduct the full contribution up to $7,000 ($8,000 if age 50+) in 2024. If you're covered by a workplace plan, the deduction phases out above $77,000 ($123,000 for married filing jointly) in 2024. Even if you can't deduct your contribution, a non-deductible IRA contribution can be part of a backdoor Roth strategy. Roth IRA contributions are never deductible but grow tax-free.