In 2020, Madison Is a Single Taxpayer Who Is 25

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The Answer is $3,900
Because she participates in an employer-sponsored retirement plan, her contribution is subject to phase-out. Before phase-out, the maximum deductible contribution is $6,000. Because her MAGI is 35 percent of the way through the $65,000 − $75,000 phase-out range for a single taxpayer ($3,500/$10,000), her deductible contribution is phased out or reduced by $2,100 ($6,000 × 0.35). Thus, the maximum deductible contribution is $3,900 ($6,000 − $2,100).

In 2020, Madison Is a Single Taxpayer Who Is 25

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In 2020, Madison Is a Single Taxpayer Who Is 25

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