Traditional IRA

(redirected from Deductible IRA)

Traditional IRA

A tax-deferred individual retirement account that allows annual contributions of up to $2000 for each income earner. Contributions are fully deductible for all individuals who are not active participants in employer-sponsored plans or for plan participants within certain income ranges.

Traditional IRA

An investment retirement account in which a worker makes tax deductible contributions up to a certain limit throughout his/her working life. Unlike Roth IRAs, contributions are tax deductible but withdrawals are taxed, effectively deferring tax on the account until the worker begins making withdrawals in retirement. Importantly, however, tax deductibility of contributions depends on one's tax bracket. The limit to annual contributions varies by year and is indexed to inflation. Traditional IRAs are allowed to invest in securities and, in practice, normally own common stock and certificates of deposit. See also: 401(k).
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References in periodicals archive ?
On joint tax returns, covered workers are shut out from deductible IRA contributions with MAGI of $118,000 or more for 2016 ($119,000 for 2017).
After-tax dollars in traditional IRAs
By combining the standard deduction ($6,300) and the maximum deductible IRA contribution ($5,500) for 2016, a child could earn $11,800 of wages and pay no income tax.
Give yourself a break: put the kids to work
While many of the past articles cited below relate to the conversion of a traditional deductible IRA to a Roth IRA, the same considerations are important in evaluating an in-plan Roth rollover under the provisions of the ATRA.
In-plan Roth rollovers under the ATRA: a new opportunity for younger taxpayers
If your client hasn't yet made a 2013 IRA contribution and you are wondering if they can make a deductible IRA contribution now, here are the three questions you must ask to find out the answer.
How to reduce your client's 2013 tax liability ... in 2014
One way to shelter D's investment income is by making a deductible IRA contribution.
Case study: contributing to a child's IRA
Is the client eligible for a deductible IRA and were contributions made to it?
Retirement planning using a client's tax return
The maximum annual deductible IRA contribution for an individual is the lesser of (a) the maximum annual contribution amount or (b) the individual's earned income1 The maximum annual contribution amount is $5,000 in 2009.
Chapter 5: traditional IRA
For married individuals filing a joint return, if only one spouse is a participant in an employer-sponsored plan, the limit on deductible IRA contributions applies only to the participant spouse.
Chapter 51: Individual retirement plans (and SEPs)
35)] in a fully tax deductible, fully tax deferred vehicle such as a contribution to an IRC Section 401(k) plan, deductible IRA, a qualified pension plan, profit-sharing plan, IRC Section 403(b) TDA, SEP or SAR-SEP IRA, or SIMPLE IRA.
Chapter 45 Investment strategies for tax-advantaged accounts
If you are unable to make a deductible IRA contribution because of "active participation" in an employer provided plan, your spouse may still be able to make a deductible IRA contribution.
IRAs Still A Good Idea
Open an IRA--put up to $2000 annually into a traditional, tax deductible IRA, or take advantage of the new Roth IRA to avoid future taxes.
Three ways to fatten your nest egg for retirement
The new law relaxes the adjusted gross income (AGI) restrictions for active participants in qualified employer retirement plans, allowing more taxpayers to take advantage of deductible IRA contributions.
Planning for IRA contributions after the Taxpayer Relief Act of 1997

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