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Category: Tax Questions

Traditional IRA Deduction

A traditional IRA is a way to save for retirement that gives you tax advantages.
  • Contributions you make to a traditional IRA may be fully or partially deductible, depending on your circumstances, and
  • Generally, amounts in your traditional IRA (including earnings and gains) are not taxed until distributed

Contributions that are not deductible as IRA contributions are:
  • Roth IRA contributions
  • Rollover contributions
  • Nondeductible contributions due to the active participation in an employer sponsored pension plan
  • Elective deferrals to a 401(k), 403(b) plan, Section 457 plan, or federal thrift savings plan
  • IRA trustee fees billed separately and paid for with funds outside of the IRA. (These fees are deducted as itemized deductions on Schedule A, Form 1040, subject to the 2% AGI limitation.)
  • Repayments of qualified reservist distributions.

Additional links:
Instructions for Schedule A (Form 1040), Itemized Deductions
Publication 590, Individual Retirement Arrangements (IRAs)
Maximum Pension Plan Contributions

Last Updated: 5/24/2018

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