September 23, 2008
A Closer Look: Tax Deductible IRA Contributions Across the Country
Posted under: A Closer Look Series — Tags: A Closer Look Series, IRA Accounts, IRS Tax Returns by Maggie M. @ 2:04 pm
PolicyMap allows users to consider where people are contributing to their IRA accounts. By looking at the most recent data issued from the IRS for the 2005 tax year, users can view the percent of all IRS Tax Returns with IRA contributions at a state or zip code level. Among the states, Vermont leads the country with the highest percent of returns claiming an IRA contribution.
Maine follows at 3.24%, with Montana at a close 3.23%. The states with the lowest percentage of people contributing to their IRA accounts are Alabama, at 1.71% and Mississippi at 1.57%. Nationally, 2.63% of income tax filers made an IRA contribution in 2005.
New Jersey leads the country with an average IRA contribution of nearly $4,000 in 2005; up from $3,270 in 2004.
Washington, DC lags behind all the states in the average amount of IRA contributions at $3,041.