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Tax Deduction Consulting: IRA Deduction Limits Manchester NH

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. James E. Knee (RFC®), MBA
(603) 224-1010
6 Loudon Road, Suite 505
Concord, NH
Company
Sterling Financial Services, LLC
Qualifications
Education: B.S., University of Bridgeport;MBA, Southern New Hampshire University;Advanced Certificate in International Business;Series 24 Registered Principal License;Series 7 and 63 Securities License;NH Health and Life Insurance License
Years of Experience: 26
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Pension Planning, Retirement Planning, Tax Planning, Tax Returns, Seminars Work, Employee Benefits, Education Plan, Asset Protection

Data Provided by:
Fishers Income Tax Svc
(603) 622-2057
616 Mast Rd
Manchester, NH

Data Provided by:
H&R Block
(603) 647-6974
1328 Hooksett Rd
Hooksett, NH

Data Provided by:
Steele Associates
(603) 673-4660
54 Nashua St
Milford, NH

Data Provided by:
J Walker & Co LLC
(603) 224-4829
104 N State St
Concord, NH
Hours
Mon 09:00 AM-05:00 PM;Tue 09:00 AM-05:00 PM;Wed 09:00 AM-05:00 PM;Thu 09:00 AM-05:00 PM;Fri 09:00 AM

Data Provided by:
H&R Block Inside Northside Plaza
(603) 628-1976
67 HAMEL DR UNIT B4A
MANCHESTER, NH

Data Provided by:
Danis & Company
(603) 656-9041
169 South River RD #14
Bedford, NH
 
Melanson Heath & Co PC - Linda Imhoff CPA
(603) 882-1111
102 Perimeter Rd
Nashua, NH

Data Provided by:
Kline & Company, CPA, P.C.
(603) 881-8185
141 Main Street
Nashua, NH
 
Devereaux & Ean-Dixon Bookkeeping LLC
(603) 717-1214
PO Box 2794
Concord, NH
Prices and/or Promotions
10% off of individual tax return prep

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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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