Taxpayer Eligibility for IRAs

The tax code limits the extent to which individuals may take advantage of the tax benefits associated with traditional and Roth IRAs. The only eligibility criteria for contributing to a Roth IRA are income and filing status. In contrast, eligibility for deducting contributions to a traditional IRA depends on those factors as well as on whether the taxpayer and the taxpayers spouse participate in an employer-provided pension. Taxpayers are subject to an assortment of phaseout ranges based on those criteria.