You can contribute to an IRA for 2001 until April 15, 2002. The limit is $2,000 per person. Your IRA contribution may be deductible, depending on your income and whether you are covered by an employer’s retirement plan. You can deduct your IRA contribution if:
- You’re not covered by an employer’s retirement plan; or
- Your adjusted gross income (AGI) for 2001 was below $33,000, or $53,000 on a joint return.
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Above those levels, there’s a $10,000 deduction-eligibility phase out range. Say your AGI for 2001 was $58,000, on a joint return. You’d be 50% through the $53,000-to-$63,000 phase out range, so you’d only be allowed to deduct $1,000: 50% of $2,000. You could contribute up to $2,000 but only $1,000 would be deductible. If a married couple includes one spouse who’s covered by an employer’s retirement plan, the other spouse can take a full deduction with up to $150,000 in AGI. Again, there’s a $10,000 phase out range.
