Traditional IRA Deductibility Phase-Out Calculator
Example: Modified adjusted gross income (MAGI): 85000 $ · Filing status (0 = Single, 1 = Married Filing Jointly): 0 · Are you covered by a 401(k)/403(b) at work? (0 = No, 1 = Yes): 1 · Is your spouse covered by a workplace plan? (0 = No, 1 = Yes): 0
| Deductible IRA contribution amount | $2,800 |
| Phase-out percentage applied | 60.00% |
| Non-deductible (after-tax) portion | $4,200 |
| Roth IRA recommended instead? (1 = Yes, 0 = No) | 1 |
Worked example
A single filer with $85,000 MAGI covered by a workplace 401(k): the 2025 phase-out range for a covered single filer is $79,000–$89,000. At $85,000, they are 60% through the phase-out — so 60% of the $7,000 maximum is phased out, leaving $2,800 deductible. The remaining $4,200 would be a non-deductible contribution. At this income, they are still below the Roth IRA phase-out ($150,000 single), so a Roth IRA is typically the better choice for the non-deductible portion.
Frequently asked questions
What are the 2025 IRA deduction phase-out ranges?
For single filers covered by a workplace plan: $79,000–$89,000. For MFJ where the contributing spouse is covered: $126,000–$146,000. For MFJ where neither spouse is covered but one has a workplace plan: $236,000–$246,000 for the non-covered spouse. If neither spouse has a workplace plan, the deduction is unlimited regardless of income.
What should I do with a non-deductible IRA contribution?
A non-deductible traditional IRA contribution offers no immediate tax benefit — the money goes in after-tax and grows tax-deferred (not tax-free). If your income allows, a Roth IRA is almost always superior: same after-tax money in, but tax-free growth AND tax-free withdrawals. If income is too high for Roth, a backdoor Roth conversion (non-deductible IRA → Roth) is the preferred strategy — use the separate pro-rata calculator to check whether existing IRA balances complicate it.
Does a SEP-IRA or SIMPLE IRA affect these limits?
Yes — being covered by a SEP-IRA or SIMPLE IRA at work counts as being covered by a workplace plan for purposes of the traditional IRA deduction phase-out. Self-employed individuals contributing to their own SEP-IRA are also considered 'covered' for this calculation.