Adjustments to Income for Individuals

Question 1

IRA contributions

Answer 1

For 2021, an individual who is Married and is NOT covered by an employer plan, can contribute and deduct the lesser of up to $6,000 or 100% of taxable compensation (of both spouses) if their MAGI is $198,000 or less. (The phaseout for the employer covered spouse’s contributions to be nondeductible is $125K or more, for both to be nondeductible it’s $208K or more).

If 50 or older, can contribute up to $7,000 each.