- Tax Planning
- Investments 1: Before you Invest
- Investments 2: Your Investment Plan
- Investments 3: Securities Market Basics
- Investments 4: Bond Basics
- Investments 5: Stock Basics
- Investments 6: Mutual Fund Basics
- Investments 7: Building Your Portfolio
- Investments 8: Picking Financial Assets
- Investments 9: Portfolio Rebalancing and Reporting
- Retirement 1: Basics
- Retirement 2: Social Security
- Retirement 3: Employer Qualified Plans
- Retirement 4: Individual and Small Business Plans
- Estate Planning Basics
Deductibility Limits
Individuals whose modified adjusted gross income (MAGI) is below the ranges listed in Table 2 can take the full deduction for traditional IRAs, or these individuals can make a full contribution to a Roth IRA or education IRA. Your MAGI is calculated by taking your adjusted gross income and adding certain items such as foreign income deductions, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs. If your MAGI is between the ranges indicated, you can only take a partial deduction from or make a partial contribution to the indicated IRA account.
| Modified Adjusted Gross Income (MAGI) Range | ||
| Traditional IRA | ||
| Year | Single Range | Married Range |
| 2005 | $50,000–$60,000 | $70,000–$80,000 |
| 2006 | $50,000–$60,000 | $75,000–$85,000 |
| 2007 | $52,000-$62,000 | $83,000-$103,000 |
| Roth IRA | ||
| 2005 | $95,000–$110,000 | $150,000–$160,000 |
| 2006 | $95,000–$110,000 | $150,000–$160,000 |
| 2007 | $99,000-$114,000 | $156,000-$166,000 |
| Education IRA | ||
| 2005 | $95,000–$110,000 | $190,000–$220,000 |
| 2006 | $95,000–$110,000 | $190,000–$220,000 |
