Contributing to a traditional IRA can make your retirement years more comfortable and lower your tax bill. Deducting IRA contributions requires a traditional IRA, not a Roth IRA. Restrictions apply based on income and access to a workplace retirement plan. Read on to learn the rules for deducting IRA contributions and factors to consider in tax and retirement planning.

IRA contributions to a traditional account are often tax-deductible. Contributions to a Roth IRA are never tax-deductible. Eligibility to deduct contributions depends on income, tax filing status, and access to an employer-sponsored retirement account. You can contribute to a traditional IRA as long as you earned income from working during the year, regardless of how much you earned.

In 2025, you can contribute up to $7,000 to an IRA, or $8,000 if you’re 50 or older. Contribution limits for 2026 will increase to $7,500, or $8,600 if you’re at least 50. Deductibility of IRA contributions varies based on filing status and access to a workplace retirement account.

Income limits apply based on filing status and coverage by a workplace retirement account. If you’re single with no access to a workplace plan, no income limits apply for deducting your traditional IRA contribution. Married couples without workplace plans can deduct their full contributions. If you’re married filing separately and covered by a workplace plan, income limits apply.

Even if you take the standard deduction, you can deduct your IRA contribution. The deduction is above-the-line and doesn’t require itemizing your return. Most tax filing software guides you through the process. You have until Tax Day to make IRA contributions for the previous year.

You may be able to deduct your full IRA contribution, up to the annual limit, but income and workplace plan coverage affect deductibility. Contributions to a Roth IRA are not tax-deductible. Consider a traditional IRA for tax-deferred growth, even if not deductible, or explore other retirement savings options. A Roth IRA may offer better tax benefits if income limits are not exceeded.

If you’re not eligible for a Roth IRA and/or maxing out your workplace retirement plan, a nondeductible IRA still has valuable tax benefits. Consider your income, filing status, and access to workplace retirement plans when deciding on deductible IRA contributions.401(k vs. IRA: Which account is right for you?

Read more at Yahoo Finance: Are IRA contributions tax-deductible? Here are the rules.