IRA Deduction Limits 2025

The contributions to an Individual Retirement Account or better known as the IRA are deductible. Regardless of how much you contribute, as long as you have a traditional or other qualifying plans, you may be eligible for this deduction.

There isn’t a limit on how much is contributed to claim the deduction but your modified adjusted gross may opt you out of the IRA deduction. The IRA contribution limits are adjusted for inflation and changes to the cost of living, so does the IRA deduction limits.

Depending on your income, you can get a full deduction of your contributions, a partial deduction, or no deduction at all. Which income threshold that will apply to you for figuring out the deduction is up to your filing status and whether you or your spouse if filing a joint return is covered by a retirement plan at work or not.

For the 2021 tax year, the income thresholds based on the modified adjusted gross income for the IRA deduction is as follows.

Not Covered by Retirement Plan At Work IRA Deduction Limits

Filing Status	MAGI	Deduction
Single, Head of Household, Qualifying Widow(er)	No Limit	Full Deduction
Married Filing Jointly or Married Filing Separately but your spouse is also not covered by retirement plan at work	No Limit	Full Deduction
Married Filing Jointly	$198,000 or less $198,000 to $208,000 $208,000 or more	Full Deduction Partial Deduction No Deduction
Married Filing Separately but your spouse is covered by retirement plan at work	$10,000 or less $10,000 or more	Partial Deduction No Deduction

Covered by Retirement Plan At Work IRA Deduction Limits

Filing Status	MAGI	Deduction
Single or Head of Household	$66,000 or less $66,001 to $76,000 $76,000 or more	Full Deduction Partial Deduction No Deduction
Married Filing Jointly or Qualifying Widow(er)	$105,000 or less $105,000 to $125,000 $125,000 or more	Full Deduction Partial Deduction No Deduction
Married Filing Separately	$10,000 or less $10,000 or more	Partial Deduction No Deduction