Modified Adjusted Gross Income (MAGI)
What is Modified Adjusted Gross Income (MAGI)?
Modified Adjusted Gross Income (MAGI) is your Adjusted Gross Income (AGI) with certain deductions added back, used by the IRS to determine eligibility for tax benefits including IRA deductibility and Roth IRA contribution limits. For most taxpayers, MAGI equals AGI plus deductions for student loan interest, foreign earned income, and certain other items.
Why does modified adjusted gross income matter for Gold IRA investors?
MAGI determines whether your Traditional Gold IRA contribution is tax-deductible and whether you can contribute to a Roth Gold IRA at all. The 2026 phase-out ranges depend on filing status and workplace retirement plan participation. Calculating MAGI correctly before opening a Gold IRA prevents excess-contribution penalties.