Traditional IRA Deductibility Income Limits
Direct answer: If you or your spouse participate in a workplace retirement plan, your traditional IRA deduction phases out at certain income levels. For 2025, a single active participant phases out between $79,000 and $89,000. A married couple where one spouse is an active participant phases out between $126,000 and $146,000 for that spouse. A non-participating spouse of an active participant phases out between $230,000 and $240,000.
Active participant phase-out ranges (2015-2025)
These ranges apply when you are personally covered by a workplace retirement plan (401(k), 403(b), pension, SEP IRA, or SIMPLE IRA through your employer).
| Year | Single/HOH Begins | Single/HOH Ends | MFJ (Active) Begins | MFJ (Active) Ends |
|---|---|---|---|---|
| 2015 | $61,000 | $71,000 | $98,000 | $118,000 |
| 2016 | $61,000 | $71,000 | $98,000 | $118,000 |
| 2017 | $62,000 | $72,000 | $99,000 | $119,000 |
| 2018 | $63,000 | $73,000 | $101,000 | $121,000 |
| 2019 | $64,000 | $74,000 | $103,000 | $123,000 |
| 2020 | $65,000 | $75,000 | $104,000 | $124,000 |
| 2021 | $66,000 | $76,000 | $105,000 | $125,000 |
| 2022 | $68,000 | $78,000 | $109,000 | $129,000 |
| 2023 | $73,000 | $83,000 | $116,000 | $136,000 |
| 2024 | $77,000 | $87,000 | $123,000 | $143,000 |
| 2025 | $79,000 | $89,000 | $126,000 | $146,000 |
Source: IRS: 2025 IRA Deduction Limits - Effect of Modified AGI on Deduction If You Are Covered by a Retirement Plan at Work. Last verified: September 2026. Verify current-year figures at IRS.gov before making decisions.
Non-participating spouse phase-out (2025)
If you are NOT covered by a workplace plan but your spouse is, a different (higher) phase-out applies to you: $230,000 to $240,000 MAGI (married filing jointly) for 2025. Below $230,000, you can fully deduct your IRA contribution regardless of your spouse's plan.
Frequently asked questions
Can I deduct my traditional IRA if I have a 401(k)?
The deductibility depends on your income. If you are covered by a workplace retirement plan and your MAGI exceeds the phase-out range, your traditional IRA contribution is non-deductible. You can still make the contribution; growth is tax-deferred, and you track cost basis on Form 8606 each year.
What if only my spouse has a workplace plan?
If you are not covered by a workplace plan but your spouse is, a separate phase-out applies to you. For 2025, your deduction phases out between $230,000 and $240,000 of combined household MAGI. Below $230,000, you can fully deduct your IRA regardless of your spouse having a plan.
Is a non-deductible IRA contribution still worth making?
A non-deductible traditional IRA contribution still grows tax-deferred, and you can potentially convert it to a Roth IRA. However, if you have existing pre-tax IRAs, the pro-rata rule taxes a portion of any conversion. Evaluate whether the tax-deferral benefit outweighs the complexity of tracking basis on Form 8606 each year.