Use this Primer to Evaluate a 2015 IRA Contribution

The combined amount you can contribute to your traditional and Roth IRAs remains at $5,500 for 2015, or $6,500 if you’ll be 50 or older by the end of the year. You can contribute to an IRA in addition to an employer-sponsored retirement plan like a 401(k).

NRT-SEPPQ113_02But if you (or your spouse) participate in an employer-sponsored plan, the amount of traditional IRA contributions you can deduct may be reduced or eliminated (phased out), depending on your modified adjusted gross income (MAGI). Your ability to make annual Roth contributions may also be phased out, depending on your MAGI.

These income limits (phaseout ranges) have increased for 2015:

Income phaseout range for deductibility of traditional IRA contributions in 2015

1. Covered by an employer-sponsored plan and filing as:
Single/Head of household $61,000 – $71,000
Married filing jointly $98,000 – $118,000
Married filing separately $0 – $10,000

2. Not covered by an employer-sponsored retirement plan, but filing joint return with a spouse who is covered by a plan: $183,000 – $193,000

Income phaseout range for ability to contribute to a Roth IRA in 2015

Single/Head of household $116,000 – $131,000
Married filing jointly $183,000 – $193,000
Married filing separately $0 – $10,000

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