What is Modified Adjusted Gross Income (MAGI)?

Modified Adjusted Gross Income, or MAGI, determines how much of your annual Traditional IRA contribution is deductable. MAGi is the "gross income" on your Federal tax form 1040 or 1040A after taking into account amounts for IRA deduction, student loan interest deduction, exclusion for qualified bond interest and a couple of other items. Consult a qualified tax advisor for more information.