Chartered Retirement Planning Counselor (CRPC) Practice Exam 2026 – Comprehensive All-in-One Guide for Exam Success!

In 2015, the ability to deduct contributions to a traditional IRA is influenced by factors including modified adjusted gross income (AGI), filing status, and whether the individual or their spouse is covered by a retirement plan at work. For individuals who are covered by a retirement plan, the deduction begins to phase out at certain income thresholds.

For a single filer, the phase-out range for deductibility of IRA contributions starts at a modified AGI of $61,000 and completely phases out at $71,000. Since Susan's modified AGI is $105,000, it exceeds the upper limit for deductibility, meaning she cannot deduct her IRA contribution if she is covered by a retirement plan.

If she is not covered by a retirement plan, the contribution would be fully deductible regardless of her modified AGI, as there would be no income limit affecting the deductibility of the contributions.

Given that the answer in this case is $3,580, this suggests that Susan may be eligible for a reduced deduction due to the phase-out rules based on her modified AGI. The precise calculation for the deduction amount can be derived from the phase-out range and the modified AGI exceeding the threshold.

When an individual's modified AGI is within the phase