The IRS Deductions Blog

Posts Tagged ‘roth ira contributions deductible’

Question: Non-deductible contributions to a regular IRA, do I pay taxes on them again upon withdrawal?

My income doesn’t allow me to contribute to a Roth IRA nor make deductible contributions to a regular IRA. So after funding my 401K I also make a contribution to my regular IRA. When I withdrawal from that in future years, do I have to again pay taxes on my original contributions?

Answer: No, but make sure you keep good records so you can tell which money is which if you mix them. I would keep them in their own account.

In 2010 they can be converted to a ROTH no matter what your income. Read publication 590 for the details at IRS.GOV.

Items on Amazon Right Now for Roth Ira Contributions Deductible:

The Nondeductible IRA Is a Bad Idea

NEW BERLIN, Ill. (TheStreet) — While many would tell you it can be a good idea to make nondeductible contributions to your traditional IRA, I believe it’s in the “bad idea” category. There are exceptions — a Roth conversion of the nondeductible IRA, for instance. But it’s almost always a bad idea, due primarily to the way tax law works for IRA and non-IRA money. It’s almost always a bad idea …

Joe Arsenault–401K Rollovers

Question: If I make my tax deductible 4,000 IRA contribution this tax year, will I also be able to put 4,000 in a ROTH?

Answer: No. The total contribution is $5000 (or $6000 if you are age 50 and above), no matter how many IRAs you have. If you put $4000 into a Traditional IRA, you can still put $1000 into your Roth IRA.

Items on Amazon Right Now for Ira Contributions Deductible:

FINANCIAL CORNER – Time to Make New Year’s Financial Resolutions

If you want to accomplish major milestones you may have envisioned you may need to set some New Year’s financial resolutions.

Tax Deduction Tips : Tax Deductions for Cash Contributions