Modified Adjusted Gross Income - MAGI
 |
Definition of 'Modified Adjusted Gross Income - MAGI'The amount of income that determines how much of an individual's IRA contribution is deductible. The modified adjusted gross income is found by taking the individual's adjusted gross income and adding back certain items such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs. |
 |
Investopedia explains 'Modified Adjusted Gross Income - MAGI'The higher the modified adjusted gross income, the more the deductible amount of the IRA contribution will be reduced, possibly going down even to zero. If this happens, one can still contribute to an IRA plan, it's just that the whole amount contributed will not be tax deductible. The amount calculated in MAGI will often be similar or even the same as adjusted gross income. |
Related Definitions
Articles Of Interest
-
How IRA Contributions Affect Your Taxes
Learn how to work with the tax man to avoid getting gouged when you convert your plans. -
Avoid The Social Security Tax Trap
Government benefits can cost you big money! Know the income thresholds before you file. -
Traditional IRA Deductibility Limits For 2011
Find out where you can take a tax deduction on the contributions you make. -
4 IRA Changes That Encourage Savings
Find out what's new in the world of IRAs and how you can get more bang for your buck. -
Earnings within a Roth IRA are tax free, so are these earnings included in the modified adjusted gross income which is used to determine Roth IRA eligibility?
There are two possible answers to this question, depending on whether or not the distribution from the Roth IRA is qualified.Earnings on investments within a Roth IRA are neither subject to income ... -
How do I get credit for my retirement plan contributions?
There is an added incentive for adding to your retirement nest egg, if your income falls within certain limits. Under this incentive program, you are eligible for a non-refundable tax credit ... -
Roth IRAs Tutorial
This comprehensive guide goes through what a Roth IRA is and how to set one up, contribute to it and withdraw from it. -
Are You Really Retired Just Because You Stopped Working?
Retirement doesn't have to mean the end of working, it can be just the end of working to get by every week. Retirement should be about working only if you want to, not because you have to. -
How To Cut Your Mutual Fund Fees By Up To 90%
Most mutual funds don’t come close to beating the indexes they’re compared against. And yet they carry steep fees for active management. Find out how a little research and effort can cut your ... -
5 Ways To Protect And Grow Your Retirement: Whether You’re 45 Or 75 Or Somewhere In Between
Investors who take steps now can shield themselves from the coming challenges thrust upon retirees.
Free Annual Reports