The IRS Deductions Blog

Posts Tagged ‘tax_burden’

Question: 401(k) and Rollover as a deduction? Health?

I recently made contributions to a 401(k) plan with a former company and they were before tax. I rolled that over to a Fidelity IRA, is it tax deductible?

Also, are premiums contributed to a health plan before tax, tax deductible? How about contributions for a domestic partner after tax? Thanks everyone!

Answer: Federal taxes do not recognize domestic partners for tax purposes. Some states recognize registered domestic partners. Nothing you do on their behalf counts unless they qualify as a dependent. Health premiums can be deductible if you qualify to itemize.

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SCORE: Need an affordable health care option? Consider an HSA

A health plan option first introduced in 2004 offers some measure of hope. Health Savings Accounts, or HSAs, work in IRA–like fashion to cover out–of–pocket medical costs with tax–sheltered money.

Finance & Investment Tips : What Are the Tax Advantages of an IRA?

Question: 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: Better check with a ” real” tax guy…I’m thinking $ 4000. in the Traditional would bring your Adj Gross down…yes? ..no?
….and the ROTH ( seeing as you are paying tax on THAT money) should be able to take another $ 4000. (max).
One thing about our gov geniouses…they sure make things ” easy” on someone who’s trying to ” take care of themselves” instead of counting on them ( and their broken down ” we’ll take care of you” Social Security system!)

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High income protection

Jon de Fries explains why income protection insurance can be just as important for higher income earners and discusses some policy ownership issues.

Support Equal Rights in Florida Join in the fight against radical Republicans

Question: How much can we contribute, if any, to a deductible IRA?

Can we contribute to a deductible IRA and if so how much? So far we max out our contributions to Roth IRA’s every year. Also, my wife has about $8000 per year put into a 401k plan by her employer.

Answer: Here’s your chart for IRA contributions:

http://beginnersinvest.about.com/cs/iras/a/iracontribution.htm

You can have Roth AND traditional, but the TOTAL contribution is limited by law.

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

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.

Retirement Plans & Investments : Deductible Roth IRA Contributions

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.

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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

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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Time to make financial resolutions

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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