Is an IRA deductible?

Created by Shubha Bisht, Modified on Wed, 24 Jan at 1:56 PM by Shubha Bisht

Money contributed to a Traditional IRA may be fully or partially deductible from total income as an adjustment to income. If you (or your spouse, if married filing jointly) are covered by an employer-sponsored plan, there’s a phase-out range. Roth IRAs contributions are not deductible.

The limit for IRA contribution limit for 2023, whether Roth or Traditional, per the IRS, are:

$6,500 ($7,500 if you are older than 50) or
If less, your taxable compensation for the year

For the prior years of 2019-2022:

$6,000 ($7,000 if older than 50)
If less, your taxable compensation for the year

Can I deduct IRA management fees?

Per the IRS, IRA management fees are not deductible on your federal tax return.

Additional Resources:

IRS Resource: Amount of Roth IRA Contributions
IRS Resource: IRA Deduction Limits
IRS Resource: SEP and SIMPLE IRA Plans

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