Permalink Submitted by Alan - IRA critic on Tue, 2025-02-18 11:23
The SIMPLE IRA contribution results in the taxpayer being a participant in a workplace plan. That results in a MAGI limit to deduct a TIRA contribution and the limit is based on filing status.
For example, if the taxpayer is single, the TIRA deduction phaseout starts at 77k MAGI for 2025 and 73k for 2024. If filing MFJ, the phaseout begins at 123k for 2025 and 116k for 2024. Roth contributions have higher income phaseouts than this, so if MAGI is too high for the deduction, a Roth contribution may be possible.
Permalink Submitted by Alan - IRA critic on Tue, 2025-02-18 11:23
The SIMPLE IRA contribution results in the taxpayer being a participant in a workplace plan. That results in a MAGI limit to deduct a TIRA contribution and the limit is based on filing status.
For example, if the taxpayer is single, the TIRA deduction phaseout starts at 77k MAGI for 2025 and 73k for 2024. If filing MFJ, the phaseout begins at 123k for 2025 and 116k for 2024. Roth contributions have higher income phaseouts than this, so if MAGI is too high for the deduction, a Roth contribution may be possible.