Team photo
Centuria Financial Group


David P. McCabe,


Financial Planner


Nathaniel D. High, RICP®

Financial Planner


Nicholas J. Over, CFP®

Financial Planner


Sara E. Martin

Client Relations Manager


Jennifer A. McCabe

Client Relations Specialist


Centuria Financial Group

2333 Baltimore Blvd Suite B

Finksburg, MD 21048


Phone:  443-952-7232

March/April 2024

Save for Retirement and Lower Your Tax Bill?

businessman shoes stand at junction, choose way to success

You can do both! By contributing to a traditional individual retirement account (IRA) by the April 2024 tax filing deadline, you may be able to deduct some or all of your contributions on your 2023 income tax return.

Above-the-Line Deduction
Above-the-line deductions help reduce the amount of your income that is subject to federal income tax. Contributions to a traditional IRA are deducted directly from your gross income, which is used to calculate your adjusted gross income (AGI), which is the amount of income you report on your return.

Who Is Eligible?
Your ability to deduct contributions to a traditional IRA is affected by how much you earn and whether you or your spouse has a retirement plan at work. For 2023, deduction limits for individuals who are covered by a workplace retirement plan are:
  • Single/Head of Household filers with Modified AGI (MAGI) of $73,000 or less, full deduction; $73,000 - $83,000, partial deduction; over $83,000, no deduction.

  • Married filers with MAGI of $116,000 or less, full deduction; $116,000 - $136,000, partial deduction; over $136,000, no deduction.

  • Married separate filers with MAGI less than $10,000, partial deduction; over $10,000, no deduction.

Single/Head of Household and Married Joint filers not covered by a workplace plan can take the full deduction.

What if Your Spouse is Covered?
Married joint filers with MAGI up to $218,000 can claim the full deduction when a workplace plan covers one spouse. A partial deduction is available with MAGI between $218,000 - $228,000. Once MAGI exceeds $228,000, no deduction is allowed. Married filing separately whose MAGI is $10,000 or less get a partial deduction.

Contribution Limits
You can contribute up to $6,500, or your taxable compensation, if less, to a traditional IRA for 2023. Individuals age 50 and older can make an additional catch-up contribution of $1,000, for a total of $7,500.

Reap the Benefits
Over time, even small contributions to an IRA can grow and compound, so don’t miss out on this opportunity. Your financial professional can provide guidance on contributing to an IRA.

MAGI is your AGI plus a few items — like exempt or excluded income and certain deductions. The IRS uses MAGI to determine your eligibility for certain deductions, credits and retirement plans.



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Centuria Financial Group is not affiliated with Prudential Financial. Centuria Financial Group sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Centuria Financial Group is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Centuria Financial Group and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Sara E. Martin and Jennifer McCabe are employed by David McCabe and not The Prudential Insurance Company of America or its subsidiaries.
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