Deduct Your Traditional IRA: A Tax Break for Middle-Class Retirement Savers

Regular folks saving for retirement can enjoy this write-off.

Tax breaks aren’t just for millionaires. Regular folks get them, too. Take retirement saving, for example.

Anyone with earned income can put money in a traditional IRA, but not everyone can claim a tax deduction for it. Some folks make too much money.

We can each put $5,500 into an IRA each year, or $6,500 if you're 50 or older. But, if your workplace offers a retirement plan like a 401(k), the ability to deduct that contribution starts to phase out once your income hits $61,000 on a single return, or $98,000 on a joint one. (

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Another middle-class perk: Spouses with little or no earned income can still make an IRA contribution as long as the other spouse has sufficient income to cover both contributions. And that contribution remains fully tax-deductible so long as income doesn't exceed $173,000 on a joint return.

Deducting contributions to a traditional IRA is just the beginning. There are many more tax breaks for the middle class. See if you qualify.