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Traditional IRAs*

Anyone with earned income can contribute to a Traditional IRA. You may not contribute to a Traditional IRA for the year you reach age 70½ and after. Contributions to a Traditional IRA may be tax-deductible, depending on three things:

You cannot begin withdrawing money from a Traditional IRA until you reach age 59½ without incurring a 10 percent tax penalty. However, some distributions are not subject to this penalty, such as:

Distributions from a Traditional IRA must begin by April 1 of the year after you reach age 70½ and continue each year as a required minimum distribution (RMD).

Use our calculator to compare whether a Traditional IRA or Roth IRA gives you any advantage.

Traditional IRA Contribution Limits

The following chart summarizes contribution and catch-up limits for Traditional IRAs.

Contribution Limits
(Traditional IRAs)
Year Limit if under age 50 Limit for age 50+
2017 $5,500 $6,500

Deadlines: You can contribute to your IRA from January 1 until your tax filing deadline for that year, excluding extensions (usually this is April 15).

Is It Deductible?

If you are not covered by an employer-sponsored retirement plan, you can make a fully deductible Traditional IRA contribution up to the annual limit, provided your MAGI is less than the allowed maximum. If married, your spouse may also contribute to his/her own IRA.

If you are covered by an employer-sponsored retirement plan, your MAGI determines how much of your contribution may be deductible.

 
Filing Status 2017 MAGI Is It Deductible?
Single or Head of Household $62,000 or less Fully deductible
More than $62,000 but less than $72,000 Partially deductible
$72,000 or more Not deductible
Married Filing Jointly and Qualifying Widow(er) $99,000 or less Fully deductible
More than $99,000 but less than $119,000 Partially deductible
$119,000 or more Not deductible

A working or non-working spouse who is not covered by an employer-sponsored plan may have a fully deductible IRA if joint MAGI is less than $186,000 for 2017, or a partially deductible IRA if joint MAGI is less than $196,000 for 2017. For any year that a spousal IRA contribution is made, federal income tax return must be filed jointly.

Western & Southern Life does not provide tax or legal advice. Please contact your tax or legal advisor regarding your situation.

*Contribution rates per Internal Revenue Service at www.IRS.gov.

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Last Updated: 9/18/2017