What are the deductibility rules for traditional IRAs?
For single taxpayers, the threshold for full deductibility is $55,000 for 2009. The deduction is incrementally reduced for AGIs above $55,000, reaching zero at $65,000. For spouses filing jointly, the deductibility threshold is $89,000 for 2009, with the range for the incremental reduction stretched from $10,000 to $20,000. Thus, starting in 2009, the deductibility is phased out with AGIs between $89,000 and $109,000.
