Use a Traditional and Roth IRA Together
If your income exceeds the Roth IRA phase-out range, then your only alternative is to contribute to a Traditional IRA. But if your income level does not exceed the range, the choice may not be so clear.
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Are you within the Roth IRA contribution phase-out range?
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Are you eligible for a partial tax deduction on your Traditional IRA contribution?
If you can answer yes to either of these questions, it may make sense to maximize your $3,000 ($3,500 if you are age 50 or older) contribution limit by splitting your investment between a Traditional and Roth IRA. This would allow you to take advantage of the tax deductibility of a Traditional IRA and the tax-free growth of the Roth IRA.
 †The divisor is equivalent to the total span of the phase-out range.
* Modified Adjusted Gross Income (MAGI) is your Adjusted Gross Income without taking into consideration the tax deduction for a contribution to a Traditional IRA plus certain other deductions and exclusions.
Although not against IRS regulations, Delaware Investments recommends that investors not commingle deductible and non-deductible Traditional IRA assets and contributory and conversion Roth IRA assets. Consult your financial advisor or tax professional for information about your specific situation.
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