Precious Metals
The ability to save for retirement isn’t the only reason people begin contributing to an individual retirement account (IRA). Contributions to your IRA can also be tax-deductible, leaving more money in your pocket at tax time.
An IRA tax deduction is one of the added benefits of making contributions to an IRA, in addition to the tax-free or tax-deferred growth on earnings. The more you know about the tax advantages of an IRA, the better you will be able to grow your retirement savings.
The tax advantages you can earn from contributing to an IRA are one of the many reasons this type of investment is worthwhile. So before you submit your tax return, learn more about IRA tax deductions.
Modified Adjusted Gross Income, better known as MAGI, is used to determine eligibility for many things nowadays, including healthcare premiums, insurance costs, and IRA tax deductions. MAGI is fairly similar to Adjusted Gross Income (AGI), and for many people it may be the same. Still, it is important that you do not confuse the two when determining how much your tax deduction could be for an IRA contribution.
For 2021 for those filing as single or head of household, a full deduction up to the amount of your contribution limit can be taken if your MAGI is $66,000 or less. A partial deduction will be granted if your MAGI is over $66,000 but less than $76,000 per year. And if your MAGI is over $76,000, you can’t take a deduction.
If you’re married filing jointly, you can take a full deduction if your MAGI is $105,000 or less. If your MAGI is more than $105,000 but less than $125,000, you can take a partial deduction. And if your MAGI is $125,000 or more, you can’t take a deduction.
If you have detailed questions about tax deductions related to IRA contributions, you’ll want to consult your tax advisor. And if you want to learn more about how to open an IRA, contact one of the experts at Goldco.
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*Applies only to qualified orders for new customers buying precious metals with cash savings. Get 5% back in FREE Gold or Silver plus $750 towards storage reimbursed in silver when you purchase a minimum of $15,000 to $99,999 in premium precious metals. Get 10% in FREE Gold or Silver plus $2,500 towards storage reimbursed in silver or a free safe (valued at $500) when you purchase $100,000 to $149,999 in premium precious metals. Get 10% in FREE Gold or Silver plus $2,500 towards storage reimbursed in silver and a free home safe (valued at $500) when you purchase $150,000 in premium precious metals. Storage reimbursement applies to precious metals being shipped directly to a storage facility. Cannot be combined with any other offer. One safe per customer. Additional rules may apply. Contact your representative to find out if your order qualifies. For additional details, please see your customer agreement. Goldco does not offer financial or tax advice.
