February 1, 2010
Can you contribute to the traditional ira and claim deductions incase you worked part of the year?
mops asked:
Can you contribute to the traditional ira and claim deductions incase you worked part of the year for the employer that has retirement plan and you contributed to 401K?
Considerting that you were employed for rest of the year.
Can you contribute to the traditional ira and claim deductions incase you worked part of the year for the employer that has retirement plan and you contributed to 401K?
Considerting that you were employed for rest of the year.
Did not get any clear answer after lot os searching. Any ideas?
Tatyana
Comments on Can you contribute to the traditional ira and claim deductions incase you worked part of the year?
Natalee
If you were covered by a retirement plan at work, then you can take a full deduction for a Traditional IRA if your modified AGI is:
$52,000 or less (single)
$83,000 or less (married jointly)
Phaseout provisions occur over these thresholds.
Michaela
You need to do the worksheets in publication 590.
The fact that you were covered by the 401K in the rest of the year (whether you contributed or not) affects your ability to deduct for an IRA even if you weren’t covered for the first part of the year.