How is the Traditional IRA phase-out calculated?
Updated: 1/21/2013
Article ID: IAS10199
Modified Adjusted Gross Income (MAGI) is used to calculate the phase-out for Traditional IRA purposes. Take your adjusted gross income and add back the following: deductions for a traditional IRA, student loan interest, tuition and fees, and domestic production activities on Form 1040, lines 32-35; the foreign earned income and housing exclusion; excluded Series EE bonds used for college; and excluded employer paid adoption expenses.