What's Your Deduction?

What made the original IRA a no-brainer investment was a simple, indisputable fact: Contributions were deductible.

Tax Form 1040
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What made the original IRA a no-brainer investment was a simple, indisputable fact: Contributions were deductible. Put $4,000 into an IRA, write off $4,000 on your tax return.

In the 25% bracket, that saves $1,000 and delivers instant gratification. But there are some restrictions to prevent some higher-income earners from getting that deduction. There are two tests that determine how much you can deduct if you save within a traditional IRA:

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