The IRS Code is extremely complex and laden with technical jargon. There are also some “tax traps” that might be avoidable if a taxpayer plans ahead. One of those traps deals with the method that the tax code uses to qualify taxpayers for certain benefits. For example, some tax breaks are “phased out” over a range of income giving the taxpayer a partial tax break. Roth IRA eligibility is a good example. For an otherwise qualified married taxpayer filing jointly (MFJ), 2021 Roth IRA contribution eligibility begins to phase out if the Adjusted Gross Income (AGI) exceeds $198,000. The phase out range is $198,000 to $208,000 so a couple reporting an AGI of $203,000 is right at the midpoint of the eligibility range. They are allowed to make 50% of the maximum contribution that a MFJ taxpayer making less than $198,000 could make. Only eligible MFJ taxpayers with AGI’s exceeding $208,000 are completely ineligible due to income. While this may seem like a complicated eligibility criteria, it is certainly less harsh than “cliff eligibility”.