Page 26 THE EVERETT ADVOCATE – WEDNESDAY, NOVEMBER 27, 2024 SPORTS | FROM PAGE 19 TRADITIONAL IRA CONTRIBUTIONS here are limits that the Internal Revenue Code places on the amount of contributions that may be made to a traditional IRA. Deductible contributions may be limited when the individual (or his spouse) is an active participant in a retirement plan maintained by an employer. The application of the contribution and deduction limits are diff erent for taxpayers fi ling joint returns than for other taxpayers. An individual is not considT ered an active participant in an employer-sponsored plan merely because his or her spouse is treated as an active participant. However, the maximum deductible IRA contribution for an individual who is not an active participant, but whose spouse is an active participant, is phased out for adjusted gross income levels between $230,000 and $240,000 for calendar year 2024. As an example, Clyde is a participant of his company 401(k) plan. Clyde and Bonnie fi le a joint income tax return for calendar year 2024 reporting an adjusted gross income of $220,000. Bonnie may make a deductible contribution to a traditional IRA for calendar year 2024 because she is not an active participant in an employer-sponsored retirement plan and their combined adjusted gross income is below $230,000. However, Clyde may not make a deductible IRA contribution because the couple’s combined adjusted gross income is above the present range for active participants who are married fi ling a joint return ($123,000 to $143,000 for 2024). Assume the same facts as in the above example except that Clyde and Bonnie’s adjusted gross income was $240,000 for calendar year 2024. Neither Clyde or Bonnie would then be able to make a deductible contribution to a traditional IRA. The limit of $143,000 for Clyde was exceeded and the limit of $240,000 for Bonnie was exceeded. The maximum contribution to a traditional IRA is $7,000 for calendar year 2024. It will remain at $7,000 in calendar year 2025. Catch-up contributions will be allowed for any taxpayer who will be at least 50 years of age at the end of the year. These taxpayers will be able to make an additional contribution of up to $1000 for calendar years 2024 and 2025. The maximum allowable deduction is phased out if the taxpayer is an active participant in an employer-sponsored retirement plan. For calendar year 2024, the reduction is an amount that bears the same ratio to the maximum allowable deduction as the taxpayer’s adjusted gross income in excess of the “applicable dollar amount” bears to $10,000. For a single taxpayer, the “applicable dollar amount” is $77,000. The deduction amount becomes $0 when his or her adjusted gross income is $87,000 or more. As an example, assume Fredo’s adjusted gross income is $82,000 for calendar year 2024. $82,000-$77,000 = $5,000. $5,000/$10,000 = 50%. You then need to multiply the maximum traditional IRA contribution amount of $7,000 by 50% in order to determine the non deductible portion of the IRA contribution. Therefore, in this example, $3,500 would represent the non-deductible portion and $3,500 would constitute the deductible portion. This is the formula you would need to utilize in order to determine what deduction to actually take on your federal income tax return. When the IRA is partially or no longer deductible, it is a good time to evaluate whether or not a contribution to a ROTH IRA would make more sense. These are just some of the numerous rules surrounding traditional IRA’s. The choices are now more diffi cult to make as a result of the creation of the ROTH IRA. This IRA grows tax-deferred but does not provide for a current income tax deduction. After age 59 ½, the taxpayer can withdraw monies in a ROTH IRA and pay no taxes on the earnings, so long as the account has been opened for at least fi ve years. it will only continue to grow,” the fi rst-year Tide coach added. “I have always been passionate about this sport, and loved how it unites people and builds family. As someone who was raised in Everett, and played and coached in the town programs, while also captaining the (EHS) team in my senior year, this is very personal to me. I will give it all I have to set a new standard for soccer in this city in order to give it the recognition that it deserves.” Landaverde promises more soccer events over the next couple of months to maintain this positive momentum, which will hopefully translate into an even better fall campaign in 2025 for his high school program. They ended up with a 7-7-4 regular season record this year, which qualifi ed them for the Division 1 state tournament, where they dropped a preliminary round heartbreaker in overtime to host Beverly, 2-1. But this past fall was just the beginning of bigger and better things if Rodney Landaverde has anything to say about the transformation of the program from the youth level to high school. If We Happen To Meet By Accident ... You’ll Be Glad You Found Us! There is a difference between the rest and the BEST! Celebrating 46 Years In Business! TONY’S AUTO BODY Call or Visit 781-321-0032 34 Sharon Street Malden, MA 02148 TONYSAUTOBODYLLC.COM COME VISIT OUR STATE OF THE ART BODY SHOP • Computerized Paint Matching (State of the Art Spray Booth) • Computerized Frame Machines • P.P.G. Refinishing System • R134 + 1234yf A/C Machines Fully Insured -RS2415 Insurance Company Approval ALL OUR WORK IS GUARANTEED! TONY BARTOLO Owner 46 Years Let Us Handle Your Next Insurance Claim. 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