Tax Law Changes - MSN Money

When:
January 01, 2001

Who it Affects:
For all taxpayers

2001 Tax Law Changes
Deductible IRA limits go up

The income levels are higher for workers seeking to make tax-deductible contributions to Individual Retirement Accounts.

If your employer offers a retirement plan, you can still take a full deduction if your modified adjusted gross income is $33,000 a year or less ($53,000 or less if you are married and filing jointly.

The deduction is phased out between $33,000 and $43,000 for singles and between $53,000 and $63,000 for joint filers. Above those levels, you cannot claim a deduction.

If your company offers no pension plan, the contribution is fully deductible.

Spouse Contribution
If you are not covered by an employer retirement plan, but your spouse is, your IRA deduction depends on your filing status and adjusted gross income. Heres how it works.

IRA Deduction Limits

Filing status	Income level for full deduction	Income level for reduced deduction	Income level at which you receive no deduction
Married Filing Jointly	Below $150,000	$150,000 to 160,000	$160,000 or more
Married filing separately	Not available	$0 to $10,000	$10,000 or more

Related Tax Article(s):

Stretch your IRA and make the grand kids wealthy

Data providers
Quotes supplied by Interactive Data.