In 2016, low inflation means the phaseout range remains at $61,000 to $71,000 for single and head-of-household filers.
For married couples filing jointly in 2015 and where the spouse making the traditional IRA contribution is covered by a workplace retirement plan, the income phaseout range is $98,000 to $118,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the 2015 deduction is phased out if the couple's combined income is between $183,000 and $193,000.
For the 2016 tax year, jointly filing married couples where the spouse making the traditional IRA contribution is covered by a workplace retirement plan again will see the IRA deduction phased out if their income is between $98,000 and $118,000. In 2016, for an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out when the couple's joint income is between $184,000 and $194,000.
Roth IRA contribution earning limits
In 2015, the phaseout range of income limits for making a Roth IRA contribution is between $183,000 and $193,000 for jointly filing married couples; and $116,000 to $131,000 for single taxpayers.
If your income falls in those ranges for your filing status, the amount you can contribute to a Roth IRA is reduced. Make more than the top income amount in each range and you cannot put any money into a Roth IRA.
For the 2016 tax year, the Roth IRA income contribution ranges are increased a bit. Married couples filing jointly face the phaseouts when their income is between $184,000 and $194,000. The earning range for single taxpayers is $117,000 to $132,000.
No Roth conversion limits
Individuals who want to convert a traditional IRA to a Roth account no longer face the $100,000 income limit. This law change means that even if you earn too much to contribute to a Roth IRA, you can contribute to a nondeductible traditional IRA and then roll that IRA money into a Roth.
Saver's credit income limits
Some filers may be able to claim the saver's credit, also known as the retirement savings contributions credit, but only if they don't make too much money.
This tax break for low- and moderate-income workers can be claimed on 2015 tax returns as long as a single filer's income is no more than $30,500; no more than $45,750 for a head of household; or no more than $61,000 for married couples filing jointly.
For the 2016 tax year, the saver's credit is available to single taxpayers with income up to $30,750; head-of-household filers making up to $46,125; or jointly filing married taxpayers with income up to $61,500.