Tax Advantages

Tax breaks - full and partial deductions

There are income thresholds for full deduction of your Traditional IRA contributions and a formula to determine if you can make a partial deduction of your contributions if your income exceeds the limits for full deductions.
If you are a taxpayer with a modified Adjusted Gross Income (AGI)1 less than the thresholds listed below, you are entitled to a full deduction of your IRA contributions.

The table below applies to you if:

  • You are a single taxpayer and an active participant in a retirement plan.
  • You are a married taxpayer filing jointly and both you and your spouse are active participants in a retirement plan.
Income Thresholds by Tax Year
Tax Year
Single Taxpayer (AGI*1)
Married Taxpayers Filing Jointly (AGI*1)
2001 $33,000 $53,000
2002 $34,000 $54,000
2003 $40,000 $60,000
2004 $45,000 $65,000
2005 $50,000 $70,000
2006 $50,000 $75,000
2007 $52,000 $83,000
2008 $53,000 $85,000
2009 $55,000 $89,000
2010 $56,000 $89,000
2011 $56,000 $90,000
2012 $58,000 $92,000
2013 $69,000 $115,000
2014 $70,000 $116,000
2015 $71,000 $118,000
2016 $71,000 $118,000
2017 $72,000 $119,000
2018 $73,000 $121,000
2019 $74,000 $123,000
2020 $75,000 $124,000
2021 $76,000 $125,000
2022 $78,000 $129,000
* AGI is the Adjusted Gross Income on your tax return.

1The modified AGI is used for calculating IRA contribution and deduction limits. Please refer to Internal Revenue Code Publication 590 or consult with your tax adviser.

If you are a married taxpayer filing jointly, but only one of you is an active participant in a retirement plan, the threshold for married taxpayers filing jointly applies to the active participant only. The spouse who is not an active participant in a retirement plan is entitled to a full IRA deduction if the couple's combined modified AGI is less than $105,000 for 2021, or a partial deduction if the combined modified AGI is less than $125,000 for 2021. Please consult with your tax adviser to determine the applicable deduction for your situation.

Long-term tax advantages

Whether or not you are eligible to deduct all or part of your Traditional IRA contributions from your federal income taxes, all of the interest and/or investment earnings credited to your account accumulate tax deferred until they are withdrawn. Withdrawals are subject to income tax at your ordinary income tax rate at the time of withdrawal, and if made prior to age 59½, a 10% federal tax penalty.

Learn more about Automatic Contributions.
You should consider the investment objectives, risks, and charges and expenses of the variable annuity contract and the underlying investment funds carefully before investing. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses, which can be obtained by calling 800.468.3785 or visiting Read them carefully before investing.

Mutual of America's IRAs are individual variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should consider a variable annuity contract’s other features before making a decision. Form IRA-2004 or applicable state variation.

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