IRA Deduction Phase-Out Calculator

Frequently Asked Questions

How does the traditional-IRA deduction phase-out work?

If you (or a spouse) are covered by a workplace retirement plan, the deductible portion of a traditional-IRA contribution shrinks as modified AGI rises through a phase-out range, reaching zero at the top. The deduction is reduced proportionally across that range. This is general information, not tax advice.

What are the 2026 phase-out ranges?

For a covered single filer the 2026 MAGI phase-out is roughly $81,000–$91,000, and for married-filing-jointly when the contributor is covered it is about $129,000–$149,000. Verify current IRS figures, as they are indexed annually.

How is the reduced deduction computed?

Reduction = contribution limit × (MAGI − range start) ÷ range width, rounded to the nearest $10, with a $200 floor if any deduction remains. The result is subtracted from your contribution limit to get the deductible amount.

What if I am not covered by a workplace plan?

If neither you nor your spouse is covered, the full contribution is deductible regardless of income. If only your spouse is covered, a separate, higher MAGI range applies to you. Confirm details with the IRS or a tax professional - this is not tax advice.

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General information only. Not tax advice.

Tax Disclaimer: General information only. Not tax advice.

This calculator provides general tax information for educational purposes and is not tax advice. Tax laws change and vary by jurisdiction and individual circumstances. Consult a qualified tax professional or CPA for advice on your specific situation.

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How This Calculator Works

Anyone can contribute to a traditional IRA, but whether the contribution is tax-deductible depends on two things: whether you (or your spouse) are an active participant in a workplace retirement plan, and your modified adjusted gross income (MAGI). When you are covered by a 401(k) or similar plan, the IRS phases out the deduction across an income band that depends on your filing status. This calculator uses the 2026 phase-out ranges to tell you exactly how much of your contribution remains deductible, the phase-out percentage, and how much - if any - would become a non-deductible contribution that you would track on Form 8606. Enter your filing status, MAGI, age, and intended contribution, and it does the proration the way the IRS worksheet does.

Formula / Method

If MAGI is at or below the range start, 100% of the contribution is deductible; at or above the range end, 0%. Inside the band the deductible fraction = 1 − (MAGI − range start) ÷ (range end − range start). The 2026 ranges are: single or head of household $81,000–$91,000; married filing jointly when you are the covered spouse $129,000–$149,000; married filing jointly when only your spouse is covered $242,000–$252,000; and married filing separately $0–$10,000. The contribution itself is capped at the 2026 limit - $7,000 under age 50, or $8,000 with the $1,000 catch-up at 50 and older. The IRS rounds the deductible amount up to the nearest $10 and applies a $200 minimum whenever any deduction remains. Negative or blank inputs are rejected with a friendly message, so the result is never NaN.

Worked Example

Single filer, age 40, covered by a workplace plan, MAGI $85,000, contributing the $7,000 limit. The single range is $81,000–$91,000, a $10,000 band. Fraction = 1 − (85,000 − 81,000) ÷ 10,000 = 1 − 0.4 = 0.6. Deductible = $7,000 × 0.6 = $4,200, rounded up to the nearest $10 stays $4,200 - so $4,200 is deductible and the remaining $2,800 becomes a non-deductible contribution tracked on Form 8606. Push MAGI to $91,000 or above and the deduction disappears entirely; drop it to $81,000 or below and the full $7,000 is deductible.

Common Mistakes

Confusing the deduction phase-out (traditional IRA) with the contribution phase-out (Roth IRA) - they are different rules with different ranges.

Assuming you cannot contribute at all once phased out - you can still make a non-deductible traditional contribution; only the deduction is lost.

Using AGI instead of MAGI; MAGI adds back certain items and is the figure the IRS worksheet actually uses.

Forgetting that the rules only bite if you (or your spouse) are an active workplace-plan participant - with no plan coverage there is no income phase-out at all.

Overlooking the catch-up: at 50+ the limit and therefore the potential deduction is $1,000 higher.

Tips & FAQ

What if neither spouse has a workplace plan? Then the deduction is not phased out by income at any level - the full contribution is deductible. This calculator assumes active-participant status, which is when the phase-out applies. What counts as MAGI for this? Start with AGI and add back items such as the IRA deduction itself, student-loan interest, and certain foreign-income exclusions; for most people it is close to AGI. Is a non-deductible contribution worth making? It still grows tax-deferred, and tracking basis on Form 8606 means you are not taxed twice on it at withdrawal; many people also use a non-deductible traditional contribution as the first step of a "backdoor" Roth conversion - consult a tax professional first. Why the $200 floor? The IRS rule keeps a small deduction from rounding to zero; if any deduction remains in the phase-out band, it is at least $200. Married filing separately is harsh - why? The $0–$10,000 band means an active participant filing separately loses the deduction almost immediately, by design. These figures are the 2026 inflation-adjusted ranges and the math mirrors the IRS worksheet, but tax situations vary - confirm with the current IRS Publication 590-A or a qualified tax advisor before you file. This tool is informational and not tax advice.

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