Ira Deductible Contributions
July 21st, 2008Question: Max’d Roth IRA contributions & 401k. Can I contribute to non-deductible IRA, too?
I contributed the max $15,000 to my company 401K. With an adjusted AGI $102,880 for Single taxpayer, the IRS spreadsheet indicates a maximum ROTH IRA contribution of $1900 is allowed.
My question is whether a non-deductible contribution to traditional IRA in the amonut of $2100 is allowed. This keeps IRA contributions to $4000… is this allowed?
thanks,
Chaz
Answer: If you were otherwise qualified yes you would be eligible to make a contribution to a Traditional IRA,
Based on the information provided you would not be able to deduct the Traditional IRA contribution, so you would need to complete lines 1,2,3, and 14 of part one of form 8606 to keep track of your basis in the Traditional IRA for the 2,100.00
Publication 590
Instructions to form 8606
Items on Amazon Right Now for Ira Deductible Contributions:
Income limit lifted, opening Roth IRA conversions to all
Hillsborough resident Rick Smith likes the idea of converting a traditional Individual Retirement Account into a tax-free Roth IRA, but until this year, he and other higher-income taxpayers did not have that option. Now they do, thanks to a change in the tax code.
Finance & Investment Tips : What Are the Tax Advantages of an IRA?
Related posts
Posted in Retirement Plan Deductions | 
Tags: 403_b, best_ways_to_save_money, ira, tax_burden, tax_situation