Modified AGI limit for traditional IRA contributions
For 2000, if you are covered by a retirement plan at work, your
deduction for contributions to a traditional IRA will be reduced
(phased out) if your modified adjusted gross income (AGI) is between:
- $52,000 and $62,000 for a married couple filing a joint return or a qualifying
- $32,000 and $42,000 for a single individual or head of
- $-0- and $10,000 for a married individual filing
a separate return.
For all filing statuses other than married filing a separate
return, the upper and lower limits of the phaseout range increased by
$1,000. See How Much Can I Deduct? in chapter 1.
New method for calculating net income takes losses into
A new method for calculating net income associated with returned
contributions and recharacterized contributions allows net income to
be a negative amount. If no deduction is claimed for a contribution,
there is no penalty if you withdraw the contribution or if you
recharacterize it and withdraw or transfer (in the case of a
recharacterization) any net income earned on the contribution by the
due date of your return (including extensions) for the year. Prior to
2000, if your contribution suffered a loss while it was in an IRA, it
was only taken into account in calculating net income for purposes of
Beginning in 2000, the new calculation method allows you to take
into account any loss on a returned or recharacterized contribution
while it was in the IRA when calculating the amount of net income that
must be withdrawn or recharacterized. If there was a loss in either
case, net income may be a negative amount. See Excess
Contributions Withdrawn by Due Date of Return in Chapter 1
Recharacterizations in Chapter 2.
Photographs of missing children.
The Internal Revenue Service is a proud partner with the National
Center for Missing and Exploited Children. Photographs of missing
children selected by the Center may appear in this publication on
pages that would otherwise be blank. You can help bring these children
home by looking at the photographs and calling
(1-800-843-5678) if you recognize a child.
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