The IRS Deductions Blog

Posts Tagged ‘deductible contributions’

Items on Amazon Right Now for Personal Deductible Contributions:

Lyme Disease – Lovette’s Story : Ticked Off and Fed Up

Question: Can’t do Roth IRA, can I do non-deductible IRA?

My wife and I have combined income in excess of the Roth IRA limit. Are we allowed to make non-deductible contributions to traditional IRAs? Since we’re both over 50, can we both contribute the maximum of $6000?

Answer: Yes, and it may be a deductible contribution. The Deductible Amount is only limited if your income exceeds certain levels, AND you’re an active participant in a company retirement plan. In other words, if there’s no company plan, you can deduct your contribution at any income level.

Hope that helps.

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DISCLAIMER: While the information in this response was obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. The opinion voiced in this answer is for general information only and it shall not be construed as tax, legal, or investment advice for any individual. Questioners are urged to consult with their professional advisers before making any decisions regarding their finances.

RetirementGuru
CFP® & EA in practice since 1985

Items on Amazon Right Now for Non Deductible Contributions:

Needles in brief – a collection of area events.

NEEDLES – The Needles Chamber of Commerce Morning Mixer will be held at Juicy’s Famous River Café on Friday, March 18, from 7-8 a.m.

Navajo Language Academy Summer Workshops 2007

Question: C-Shares for IRA, is that a good plan?

My wife is planning to make a $5K non deductible IRA contribution for 2009 and then 2010. Our financial adviser is suggesting to invest in a c-share type fund for her IRA account. I am not very knowledgeable about these types of funds so can anyone advise if this is a good plan? or recommend something else? Thanks in advance!

Answer: I would not dream of using C shares. Run don’t walk away. There are many better options available. I like no load funds. Even no load index funds. Even a target retirement fund is going to do better than a c share.
Please chose the best no load funds.

Items on Amazon Right Now for Ira Non Deductible Contributions:

Tax advice: A wager on gambling winnings

Raphael Tulino is the spokesman for the IRS in the Orange County/San Diego area, and he’s volunteered to answer your tax questions … Q. My wife and I have questions about what the IRS required for our gambling wins and losses. I recently won…

Roth IRA Conversion Rules 2011 (www.GoodFinancialCents.com)

Items on Amazon Right Now for Tax Deductible Contributions To Super:

Who wants to be rich? Here’s how to

DON’T let time run out, there are some simple steps to take to ensure you enjoy future wealth.

Funny Politics – Super Fed (Government Charity)

Question: My group is an IRS exempt organization, but not a 501c3. How can we change designation to a 501c3?

Volunteer Firefighter Association: The person in charge before me listed us as a “Code 6″ (an organization described in section 170(c) other than a charity) & “Code 7″ (An organization to which contributions are deductible if made for the use of a goernmental unit.), but I believe that is incorrect. I am pretty sure that we are a 501c3 instead. Many years ago, funds were donated to support the fire department, now, the funds strictly support the volunteers. The department is now paid by tax dollars and mostly paid firefighters.
Thanks for the responses. Our association does ease the burden on the city by purchasing uniforms, etc for the volunteers so the city doesn’t have to.
Reason to change: I think most people (like myself) don’t understand the tax code and are hesitant to donate if an organization is not a 501c3. Additionally, my employer (and a few other volunteers) will match my hours with a donation, but only if the org is a 501c.

Answer: Whether your association can be a 501(c)(3) depends on what money contributed to the association will do. A volunteer firemen’s relief association that receives contributions that benefit only the volunteers and their families cannot be a 501(c)(3). If your organization exists only to provide disability and/or retirement benefits to members, then it cannot qualify. For a firemen’s association to qualify, it must “lessen the burdens of government.” If contributed money goes toward training volunteers to fight fires, for example, this is considered to be lessening the burdens of government.

If you wanted to change to a 501(c)(3), you would have to complete Form 1023 and wait for the IRS to rule. It’s a pretty complicated form, and quite a bit of narrative writing and documentation is involved.

So I have to ask, why it would matter so much whether you are a 501(c)(3) or a different type of organization described in section 170(c)? Whether or not you’re a 501(c)(3), contributions to the association will be tax deductible. That’s what section 170(c) permits–deductions for contributions to various kinds of organizations, including 501(c)(3) and others.

Items on Amazon Right Now for Irs Deductible Contributions:

Secret donations and gift tax _ a new conundrum

Outside poltical groups and the 35 percent gift tax _ a legal muddle for big donors

Churches to defy IRS on sermons Church and State uniting?