Traditional IRA Deduction Phase-Out Calculator 2026

What Is the Traditional IRA Deduction Phase-Out?

A Traditional IRA contribution is generally tax-deductible — meaning it reduces your taxable income for 2026 — but the deduction phases out at higher modified adjusted gross income (MAGI) levels if you or your spouse are covered by a workplace retirement plan. If neither of you is covered, the full deduction is available regardless of income. The 2026 phase-out ranges, indexed for inflation in IRS Revenue Procedure 2025-19, are: $79,000–$89,000 for single filers covered by a plan, $126,000–$146,000 for MFJ where the contributing spouse is covered, $236,000–$246,000 for MFJ where only the non-contributing spouse is covered, and $0–$10,000 for married filing separately. Source: IRS Publication 590-A.

The 2026 contribution limit itself is $7,000 for individuals under age 50 and $8,000 for those age 50 and older (the $1,000 catch-up is not indexed but was made permanent under the SECURE 2.0 Act). The phase-out reduces the deductible portion of whatever you actually contribute — non-deductible contributions are still allowed up to the full limit, but they create basis tracked on Form 8606 to avoid double-taxation later.

How the Phase-Out Math Works

If your MAGI is below the lower threshold, the full contribution is deductible. If MAGI is above the upper threshold, the deduction is fully phased out (zero). Inside the phase-out range, the IRS uses a proration formula:

• Reduction = (MAGI − lower threshold) ÷ phase-out range × contribution limit
• Deductible = contribution limit − reduction (rounded up to next $10, minimum $200 if you fall inside the range)

This calculator applies the IRS rounding rules from Worksheet 1-2 of Pub 590-A. Note the special rule: if you fall inside the phase-out range and the formula produces a deductible amount under $200, IRS rules round it up to $200 to preserve at least a minimal deduction.

Why Workplace Plan Coverage Matters

"Covered by a workplace plan" means active participation in an employer-sponsored retirement plan during 2026 — 401(k), 403(b), 457(b) governmental plan, SEP-IRA, SIMPLE IRA, defined benefit pension, or thrift savings plan. You are considered covered if Box 13 "Retirement plan" is checked on your W-2, or if you contributed for the year (even just one paycheck). Importantly, having access to a plan but choosing not to participate does NOT make you covered — you must have actually had contributions or accruals.

For married couples, the rules differ depending on which spouse is covered. The most common scenario: if you are covered but your spouse is not, your deduction phases out at the standard $126,000–$146,000 MFJ range. If only your spouse is covered, the higher $236,000–$246,000 range applies to your deduction (and the standard range applies to your spouse's). Track this carefully — the wrong table can cost thousands in lost deductions.

Roth IRA Alternative and Backdoor Strategy

If your Traditional IRA deduction is phased out, two alternatives commonly apply: a direct Roth IRA contribution (also income-limited but with separate higher thresholds), or a non-deductible Traditional IRA contribution that you immediately convert to Roth — the "backdoor Roth." Non-deductible contributions are reported on Form 8606 to establish basis. The 2026 Roth IRA phase-out ranges are roughly $150,000–$165,000 (single) and $236,000–$246,000 (MFJ) — verify final numbers in Rev. Proc. 2025-19. Last updated: May 3, 2026. Source: IRS Pub 590-A.