Increased income limits for IRAs for 2008

Eligibility limits for making deductible contribution to IRAs if you are an active participant in a qualified retirement plan are higher in 2008. For married couples filing jointly and qualifying widow(er)s, the 2008 phaseout threshold is modified adjusted gross income (MAGI) of $85,000; the phaseout is complete once MAGI is $105,000 or more. For single taxpayers and heads of households, the 2008 MAGI threshold is $53,000; the phaseout is complete at MAGI of $63,000 or more. For a married person filing jointly who is not an active participant but whose spouse is, the MAGI threshold is $159,000; the phaseout is complete for MAGI of $169,000 or more.