What are the tax deductibility benefits for a Traditional IRA? By contributing to your Traditional IRA, you receive an immediate benefit. Your annual contribution is 100% tax deductible if you fall into one of the following:
You do not receive benefits under an employer’s retirement plan
If you are married and filing jointly and together you earn no more than $75,000 in 2007
($80,000 in 2008).
If filing individually and you earn no more than $50,000 in 2007.
For those who participate in an employer plan, IRA deductibility is gradually phased out above certain income levels.
