In general, an individual who isn't an active participant in certain employer-sponsored retirement plans, and whose spouse isn't an active participant, may make an annual deductible cash contribution to an IRA up to the lesser of: A statutory dollar limit, or 100 percent of the compensation that's includible in his gross income for that year.
For 2017, the statutory dollar limit is $5,500, plus an additional $1,000 for those ages 50 or older. If an individual (or their spouse) is an active plan participant, the deduction phases out over a specified dollar range of modified AGI (MAGI).
For 2017, a taxpayer may be able to take an IRA deduction if he was covered by a retirement plan and his 2017 MAGI is less than $72,000 ($119,000 if married filing jointly or qualifying widow(er)). If the taxpayer's spouse was covered by a retirement plan, but the taxpayer was not, he or she may be able to take an IRA deduction if 2017 MAGI is less than $196,000 .
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