What is the Traditional IRA phase-out?
The Traditional IRA phase-out refers to the income ranges at which deductible contribution limits gradually decrease for taxpayers participating in workplace retirement plans. For 2024, married couples filing jointly experience phase-outs between $123,000 and $143,000 in modified adjusted gross income, while single filers face reductions between $77,000 and $87,000. The deduction decreases proportionally within these ranges, rather than being eliminated at the lower threshold. Understanding phase-out calculations enables strategic Traditional 401k individual planning and income management to preserve retirement savings tax benefits while building comprehensive wealth accumulation strategies.
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