Reviewed and updated October 16, 2026
Rules and decisions to review
- Traditional IRA contributions may be deductible; income and workplace retirement coverage can limit the deduction.
- Roth IRA contributions are not deductible. Qualified withdrawals can be tax-free, subject to the applicable requirements.
- Annual contribution limits generally apply across traditional and Roth IRAs combined, and eligible compensation requirements also matter.
- Withdrawals can trigger income tax, additional early-distribution tax or required minimum distribution rules. Track nondeductible traditional IRA basis so it is not taxed again.
A practical example
Making a contribution does not prove that it is deductible. Someone participating in a workplace plan should check the deduction rules before assuming a traditional IRA deposit reduces taxable income.
Records to gather
Gather Forms 1099-R and 5498, contribution confirmations, workplace-plan information and prior Forms 8606.
Your next step
Reconcile contributions and distributions across every IRA, including accounts at different custodians. Review deductibility, basis and distribution requirements before filing; do not discard earlier Forms 8606.
Official sources
This guide provides general information. The rules depend on the tax year, jurisdiction and your circumstances. Ask our team which filing or planning steps apply to you.
