Active Participants in Retirement Plan Sample Clauses

Active Participants in Retirement Plan. If the Individual is an active Participant in a Retirement Plan, the Individual may deduct the Individual’s Traditional IRA contribution if the AGI of the Individual and if applicable, the Individual and the Individual’s Spouse, is less than the Threshold Amount (see below). If the AGI of the Individual, and if applicable the Individual and the Individual’s Spouse, equals or exceeds the Threshold Amount but is less than the Phaseout Amount (see below), the Individual’s ability to deduct their Traditional IRA contribution is reduced ratably, but not below $200. If the AGI of the Individual equals or exceeds the Phaseout Amount, the Individual may not deduct any Traditional IRA contributions. The AGI limits for active Participants vary depending upon the Tax Year and the Individual’s Federal filing status. The charts below illustrate the AGI limits for each filing status. If the Individual is married and is an active Participant in the Plan and files jointly with their Spouse: Taxable Year Threshold Amount Phaseout Amount 2002 $ 54,000 $ 64,000 2003 60,000 70,000 2004 65,000 75,000 2005 70,000 80,000 2006 75,000 85,000 2007 and thereafter 80,000 100,000 If the Individual is single and an active Participant in a Plan and files using any non-married filing status: Taxable Year Threshold Amount Phaseout Amount 2002 $ 34,000 $ 44,000 2003 40,000 50,000 2004 45,000 55,000 2005 50,000 60,000 2006 50,000 60,000 2007 and thereafter 50,000 60,000 If the Individual is married but files separately, the Individual’s Threshold Amount is $0 and their Phaseout Amount is $10,000 for all Tax Years, $20,000 in the case of a joint tax return for tax years beginning after December 31, 2006.