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Traditional IRA Deduction Calculator (2026)

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Understanding the traditional IRA deduction calculator — concept and principle

Anyone with taxable compensation can contribute to a traditional IRA, but whether the contribution is deductible on a US federal return depends on your filing status, your modified adjusted gross income (MAGI) and whether you or your spouse are covered by a workplace retirement plan such as a 401(k). This calculator applies the 2026 rules to split a planned contribution into deductible and non-deductible parts.

A ramp showing the IRA deduction fading from full to none between $81,000 and $91,000, and 15 bills split 9 and 6For a single filer covered by a workplace plan, the deduction phases out between $81,000 and $91,000 of MAGI. At $85,000, 60% remains, so $4,500 of a $7,500 contribution is deductible and $3,000 is not.The deduction fades out as income rises60% leftfullnone$81,000$91,000$85,000your MAGI$7,500 contribution = 15 bills of $500deductible $4,500not deductible $3,000track on Form 8606
At $85,000 MAGI, 60% of the $7,500 contribution, $4,500, is deductible.

How it is calculated

  1. Contribution limit for 2026: $7,500, plus a $1,100 catch-up if you are 50 or older ($8,600). The calculator caps your contribution at this limit.
  2. Phase-out range by situation: single or head of household and covered, $81,000–$91,000; married filing jointly and you are covered, $129,000–$149,000; married filing jointly, only your spouse covered, $242,000–$252,000; married filing separately, $0–$10,000. If neither of you is covered, there is no income limit.
  3. Below the range: fully deductible. At or above the top: nothing deductible. Inside the range: deduction = contribution × (top − MAGI) ÷ (top − bottom), rounded up to the next $10, with a $200 minimum if the result is above zero.
  4. Non-deductible part = contribution − deduction.

The principle

The deduction is aimed mainly at people without a workplace plan. Once you have one, it fades out linearly across a $10,000 band ($20,000 for joint filers), so a small rise in income never removes the whole benefit at once. The non-deductible part is still allowed; it grows tax-deferred and is tracked as "basis" so it is not taxed again when withdrawn.

Worked example

  1. Defaults: single, covered by a workplace plan, MAGI $85,000, age 45, planned contribution $7,500.
  2. Limit = $7,500 (under 50), so the full $7,500 counts. Range = $81,000–$91,000.
  3. Fraction remaining = (91,000 − 85,000) ÷ 10,000 = 0.6.
  4. Deduction = 7,500 × 0.6 = $4,500 (already a multiple of $10).
  5. Non-deductible part = 7,500 − 4,500 = $3,000 (Form 8606).

How to read the result

Each $1,000 of MAGI inside a single filer's range costs about $750 of deduction at full contribution. Near the bottom of the range, pre-tax 401(k) or HSA contributions that lower MAGI can restore the full deduction.

Common mistakes

Keep in mind: The calculator multiplies your own contribution by the remaining fraction. The IRS worksheet in Publication 590-A applies that fraction to the full limit and then caps it at your contribution, so if you contribute less than the limit the official deduction can be higher. Contributions also cannot exceed taxable compensation. This is an estimate, not tax advice.

Frequently asked questions

What is the deadline for a 2026 contribution?

Generally the tax filing due date in April 2027, not including extensions.

Can a non-working spouse get a deduction?

Yes, a spousal IRA can be funded from the working spouse's compensation on a joint return; the $242,000–$252,000 range applies if only the working spouse is covered.

Sources: IRS news release IR-2025-111 (2026 limits) · IRS Publication 590-A, Contributions to Individual Retirement Arrangements

Checked 8 Nov 2026. IRS IR-2025-111; IRS Publication 590-A worksheet rules.

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