Traditional IRAs are tax-deferred, meaning that you don’t have to pay tax on any interest or other gains that the account earns until you withdraw the funds. Contributions you make to the account may entitle you to a tax deduction but has certain limitations:
If you have a retirement plan at work: Your deduction may be limited if you (or your spouse, if married) are covered by a retirement plan at work and your income exceeds the levels in the table below.
|Single Active Participant||$64,000 - $74,000||$65,000 - $75,000|
|Married Active Participant, Filing Joint Tax Return||$103,000 - $123,000||$104,000 - $124,000|
|Married Active Participant, Filing Separate Tax Returns||$0 - $10,000||$0 - $10,000|
|Spouse of an Active Participant||$193,000 - $203,000||$196,000 - $206,000|