Which of the following affects the deductibility of contributions made to a traditional IRA?

The deductibility of contributions made to a traditional IRA is fundamentally influenced by whether the IRA owner participates in a qualified employer plan. This is a critical factor because the IRS has established income limits that determine how much, if at all, an individual can deduct when they are an active participant in such a plan.

When an individual is enrolled in a qualified employer-sponsored retirement plan, their ability to deduct contributions to a traditional IRA can be significantly affected based on their modified adjusted gross income (MAGI). If their income exceeds certain thresholds, the deduction may be reduced or eliminated entirely. This encourages individuals who are not covered by such plans to make contributions to IRAs without the same limits on deductibility.

The other factors mentioned, such as the type of investments within the IRA, the owner's age, and marital status, primarily influence contributions in other ways—like contribution limits or withdrawal penalties—but they do not directly affect the deductibility of contributions. The focus on participation in a qualified employer plan showcases how the IRS aims to manage retirement savings within the broader context of all available retirement income strategies.