The IRS Deductions Blog

Posts Tagged ‘deductible ira contributions 2009’

Question: I made contributions to a standard IRA for my wife and me in 2009 and they were tax deductible.?

I did the same in 2010, but I apparently made too much money and the contributions are Not Tax Deductible. The money is in an account with the rest of my IRA money, which will be taxed when I withdraw it in retirement. How can I get the money back from last year without paying taxes on it twice?

Answer: You have several options. The simplest is to file a Form 8606 which will keep track of the non-deductible contribution so when you withdraw the money from the IRA you aren’t taxed on the contribution. You can withdraw the contribution and the gain or loss on it before April 18 and file the same 8606 or you can re-characterize the money as a Roth if your income wasn’t too high for that. See pub 590. There is no penalty by doing these things as it is not an excess contribution but simply an allowable non-deductible contribution. I’ve done those for years.

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Question: Tax Pros please – Can I do both? 401k contribution and a tax deductable IRA contribution for 2006 tax year?

I really need a definitive answer. In 2006, I contributed to my company sponsored 401k plan. Can I also make a tax deductible contribution to my IRA in the same year? On my w-2, I have a checked box under “Retirement Plan.” Does it make a difference in tax deductibility if I contribute to a traditional or Roth IRA? Thanks for your help!

Answer: 1) Maybe. If you are single and you make under $50k, you should be able to do a deductible traditional IRA. If you make over $60k and are single, you can not. If you make between $50k and $60k, the $4000 IRA limit is reduced.

2) Only traditional IRAs are deductible. Roths are not.

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To amend the Internal Revenue Code of 1986 to allow penalty-free withdrawals from IRAs for certain purposes, to increase the amount of tax deductible IRA contributions, and for other purposes. $9.45 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications. In broadening the public understanding of government and its work, an enlightened democracy can grow and prosper. Ranging from historic Congressional Bills to the most recent Budget of the United States Government, the BiblioGov Project spans a wealth of gover…

Individual Retirement Accounts (IRAs): Issues and Proposed Expansion $0.99 Current law provides many incentives to promote saving. The goal of these provisions is to increase saving for special purposes such as education or retirement, and to increase national saving. Increased national saving can lead to faster wealth and capital accumulation, which can boost future national income.An increasingly important retirement saving vehicle is the individual retirement account …

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Like many people, you may make some New Year’s resolutions. Perhaps you’ve promised yourself that you’ll visit the gym more often or learn a new language or reconnect with a long-lost friend. All of these are worthy goals, of course, and if you achieve them, you may add new dimensions to your life. But if you want to accomplish other major milestones you may have envisioned — a new home, college …

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