Can I contribute to a Roth IRA?
Not necessarily, since contributions are limited by your income. In general, you can contribute to a Roth IRA if you earn:
•less than $133,00 and are single
•less than $196,000 and are married and filing jointly
•less than $10,000 and you're married and filing separately
Can I deduct the contributions I make to my IRA?
A traditional IRA comes in two varieties: deductible and nondeductible. To see if you qualify for a deductible IRA, which lets you deduct all or part of your contributions from your taxable income, use the following guidelines.
•If you don't have a retirement plan at work and you're under 70 ½, you can deduct the entire amount from your taxes.
•If you have a retirement plan at work, you may fully or partially deduct your contribution only if your adjusted gross income (AGI) qualifies. For 2017, the deductions are phased out entirely for singles earning over $72,000 or couples earning over $119,000.
•If you're not covered by a retirement plan at work, but your spouse is, you may qualify for a full or partial deduction if you file jointly and your AGI is below $196,000 for the 2017 tax year.