Traditional IRA Tax Question

[Andrew Pettit]

Good Evening BB,

I have placed the maximum contribution for 2019, into a traditional IRA to maximize my tax deduction. My first question would be that while I have not purchased any securities with my IRA monies, it just sitting there in the account; I am still able to claim the $6,000 deduction as long as I don't move it, correct? Also, being that I am in the military my W-2 income will be 53,000 and my rental income will be 45,000 gross and $5,500 net income. Do I still qualify for the maximum tax deduction?

Thanks Andrew. 

[Ashish Acharya]

Originally posted by @Andrew Pettit:

Good Evening BB,

I have placed the maximum contribution for 2019, into a traditional IRA to maximize my tax deduction. My first question would be that while I have not purchased any securities with my IRA monies, it just sitting there in the account; I am still able to claim the $6,000 deduction as long as I don't move it, correct? Also, being that I am in the military my W-2 income will be 53,000 and my rental income will be 45,000 gross and $5,500 net income. Do I still qualify for the maximum tax deduction?

Thanks Andrew. 

I partially agree with Paul. However, there is no phase-out unless you/spouse is active participants in other "employers" plans. You can make a Million dollar in W-2 wages/ business and still get the full traditional IRA deduction.