Individual Taxes: Taxation of Retirement Plan Benefits

Question 1

In 2015, the phaseout of the IRA deduction for married taxpayers participating in another pension plan filing jointly

Answer 1

exists for AGI between $98,000 and $118,000. Since their AGI is halfway between $98,000 and $118,000, only half of the $11,000 is deductible

Question 2

If a taxpayer has a cost to recover from their pension or annuity plan

Answer 2

the taxpayer can exclude part of each annuity payment from income as a recovery of their cost

Question 3

If the Taxpayer is not covered by a plan

Answer 3

there is no Income limit for Contributions to Traditional IRA