Business Tax Recovery Logo


Tax Deduction Consulting: IRA Deduction Limits Parkersburg WV

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.

Liberty Tax Service
(866) 871-1040
401 Grand Central Ave
Vienna, WV

Data Provided by:
Bennett Tax Svc
(740) 423-1040
230 Washington Blvd
Belpre, OH

Data Provided by:
H&R Block
(740) 373-5418
474 PIKE ST
MARIETTA, OH

Data Provided by:
Mr. Gregory R. Metcalf (RFC®), RFP
(307) 723-5018
200 Ivy St
Weirton, WV
Company
Horizon Financial Group
Qualifications
Education: Ohio University, BBA FinanceCollege for Financial Planning's CFP Certification Professional Education Program
Years of Experience: 15
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Portfolio Management, Pension Planning, Retirement Planning, Medicaid Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Education Plan, Healthcare Accounts, Asset Protection

Data Provided by:
Liberty Tax Service
(866) 871-1040
3559 Robert C Byrd Dr
Beckley, WV

Data Provided by:
H&R Block Inside Sears At Grand Central Mall
(304) 485-4749
500 GRAND CENTRAL AVE
VIENNA, WV

Data Provided by:
Liberty Tax Service
(866) 871-1040
18 Acme St
Marietta, OH

Data Provided by:
Harold D. Vealey (RFC®), CLU, LUTCF
(304) 346-2154
910 Chester Road
Charleston, WV
Company
Vealey Financial Services
Qualifications
Education: BA
Years of Experience: 43
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Charitable Planning, BuySell, Compensation Plans

Data Provided by:
Penny Pinchers LLC
(304) 587-4005
Po Box 825
Clay, WV

Data Provided by:
Liberty Tax Service
(866) 871-1040
128 Emily Dr
Clarksburg, WV

Data Provided by:
Data Provided by:

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...

Click here to read the rest of this article from BusinessTaxRecovery.com