Traditional IRA Tax Deduction and Contribution Limits

Yes, you can contribute to a traditional IRA if you make $200K. However, if you are covered under a workplace retirement plan and earn 200K, then depending on your tax filing status, your tax deduction may be phased out or limited.

Yes, you can contribute to both a traditional IRA and a 401(k) as long as you are making contributions within the fixed limits. For 2025, the traditional IRA contribution limit is up to $7,000 per year. Additionally, if you are 50 years or older, you can contribute up to $8,000.

If your income is too high to deduct the traditional IRA contribution, then you can opt for non-deductible contributions. In this case, your earnings will grow tax-deferred; however, withdrawals will be partially taxable later.

Yes, you can open a traditional IRA, even if you earn more than $150K. However, your tax deduction eligibility will depend on whether you or your spouse has a retirement plan at work.

It depends on your choice to convert your IRA to a Roth after age 60. Converting may reduce your taxes in the future, especially if you expect higher tax rates. However, you will need to pay taxes on the conversion amount.