Income limits for traditional IRA

[happygirl]

Our yearly income is over the limit for a ROTH IRA this year, but I thought we could still contribute to a traditional IRA. I didn't think there was an income limit for the traditional IRA.

Sometimes I feel like the more I learn, the more confused I become. Is there an income limit that prohibits you from contributing to a traditional IRA?

[Broken Arrow]

No, there are no income limits for contributions to a traditional IRA.

However, there are deductibility limits. According to publication 590:

For 2009, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

* More than $89,000 but less than $109,000 for a married couple filing a joint return or a qualifying widow(er),
* More than $55,000 but less than $65,000 for a single individual or head of household, or
* Less than $10,000 for a married individual filing a separate return.

It's also worth noting that what I quoted is specifically for 2009. The limits are likely to go up for 2010 (which isn't a bad thing).

[happygirl]

Ah, that's what I read. Thanks for clearing that up for me!