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Publication Date: March 2008
Publisher: Tax Policy Center
Author(s): Benjamin H. Harris; Christopher Geissler
Research Area: Banking and finance
Keywords: Elderly; Retirement/Pensions; Tax Policy; Tax Distribution and Economic Trends
Type: Report
Abstract:
The tax code limits the extent to which individuals may take advantage of the tax benefits associated with traditional and Roth IRAs. The only eligibility criteria for contributing to a Roth IRA are income and filing status. In contrast, eligibility for deducting contributions to a traditional IRA depends on those factors as well as on whether the taxpayer and the taxpayer?s spouse participate in an employer-provided pension. Taxpayers are subject to an assortment of phaseout ranges based on those criteria.