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Traditional IRAs can get interesting if you or a spouse is covered by a qualified plan at work.

You are able to deduct all of your contributions into a Traditional IRA as long as you (or your spouse) are not a participant in an employer-sponsored retirement program. If either of you are, there are certain regulations you should be aware of. The amount of your contribution that can be tax-deductible is determined by your (and your spouse’s) modified adjustable gross income (MAGI).

In 2016, if you have a qualified plan at work, you can still make deductible contributions if you income is up to $71,000 as a single person or $118,000 as a married couple. If your spouse is covered by a plan at work but you aren’t, you can keep making deductible contributions to your traditional IRA up until your joint MAGI is $184,000.

As always, it is important to consult a financial or tax advisor to find out how much of your contribution can be deductible.

It is also possible to make non-deductible contributions to an IRA, but please see, “How Do Deductible and Non-Deductible IRAs Differ?”