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Tax Deduction Consulting: IRA Deduction Limits Brigham City UT

The Internal Revenue Service's Publication 590, Individual Retirement Arrangements, gives all the information for the deduction limits in an IRA. The publication also gives the pertinent information on setting up the account and explains the differences between a Roth IRA and a traditional IRA. The amount of your personal deduction is limited by two factors.

Mr. Gregory W. Williams (RFC®), CFP, CHFC, CLU, LUTCF, MSFS
(801) 453-2271
6340 South 3000 East, Suite 500
Salt Lake City, UT
Company
Exit Strategy Specialists, LLC
Qualifications
Years of Experience: 26
Membership
IARFC, MDRT, FPA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Business Coach, Charitable Planning, Education Plan, Asset Protection, BuySell, Compensation Plans

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H&R Block
(801) 223-9766
1549 N STATE ST STE 102
OREM, UT

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Gardner Tax & Accounting
(435) 656-8291
32 E 100 S
St George, UT
Hours
M-F 8 am - 5 pm

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H&R Block
(801) 495-4172
9151 S QUARRY BLVD
SANDY, UT

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Robert Blake Accounting and Tax
(801) 763-8295
9626 Dorchester Drive
Cedar Hills, UT
 
Mr. A. Wayne Margetts (RFC®), LUTCF
(801) 532-1871
175 S Main St, Ste 1050
Salt Lake City, UT
Company
LPL
Qualifications
Education: BSc (Math)MBA
Years of Experience: 16
Membership
IARFC, MDRT, NAIFA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Long Term Care Insurance, Group Insurance, Charitable Planning, Education Plan, Charitable Foundations, Asset Protection, BuySell, Compensation Plans

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Singleton's Tax Svc
(801) 373-6920
244 W 300 S Ste 1
Provo, UT

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H&R Block
(435) 462-2785
750 S STATE ST
MOUNT PLEASANT, UT

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H&R Block
(801) 294-7998
75 E 2200 S
BOUNTIFUL, UT

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H&R Block
(801) 766-2308
1438 E MAIN STE 8
LEHI, UT

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Tax Deduction Consulting: IRA Deduction Limits

Deduction Limits in an IRA

The deduction limits in an IRA are subject to change each year. The current amounts and the projected deductions for upcoming years can be found in IRS Publication 590.

The Internal Revenue Service's Publication 590, Individual Retirement Arrangements, gives all the information for the deduction limits in an IRA. The publication also gives the pertinent information on setting up the account and explains the differences between a Roth IRA and a traditional IRA. The amount of your personal deduction is limited by two factors. There are deduction limits in an IRA that are based on your adjusted gross income (AGI) as well as a limit to the total amount of your contributions.

The deduction limits in an IRA use the phase out method where the deduction begins at gradually reduction at a certain income level and is gradually reduced until it reaches zero. In 2007, the phase out begins at $83,000 and continues to $103,000 for a married couple filing a joint return. The phase out amount begins at $52,000 and ends at $62,000 for single taxpayers or Head of Household status. These limits apply to persons who have a traditional IRA at their place of employment.

In the case of a taxpayer who is living with their spouse and filing jointly and it is the spouse that is covered by an IRA at their place of employment, but you are not, the phase out limit begins at $156,000 and ends at $166,000. For 2007, if your AGI exceeds $166,000, you are unable to take any deduction for contributions to your IRA.

Individual Retirement Accounts, or Arrangements, serve two major purposes. They provide a way to save for retirement. This is their primary purpose. The secondary purpose is to provide a bit of current tax relief for lower income workers. The fact that contributions are deductible is one method this is accomplished. The interest earned on IRA accounts is also exempt from taxation during the year it is earned although it will be taxed when the funds...

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