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View Full Version : IRA limit


Night_Hawk
03-14-2007, 08:38 AM
If your total income is 165K, but you and your wife put 31k in the 401k accounts would you be able to contribut to an IRA.

I am recieving different answers from " Tax professionals", and was wondering if anyone was in this position before and what answers they recieved.

thanks


LAfrequentflyer
03-14-2007, 09:04 AM
http://www.investopedia.com/articles/retirement/03/011603.asp


-LAFF

higney85
03-14-2007, 01:11 PM
look into a Roth 401(k)- some contributions are tax deductible in the sense that they get pretaxed and when you pull them out IN retirement you dont get the shaft.


kronan
03-14-2007, 06:48 PM
You can always contribute to an IRA. Just can't always deduct the contribution for a traditional IRA. And, can't always contribute to a Roth IRA.

Traditional IRA stops being deductible when your modified AGI (eg Your W-2 taxable earnings with some adjustments) exceeds 85k for married filing jointly.

for a Roth IRA, modified AGI cap married filing jointly is 160k.

So, if you grossed 165, and put more than 5k into a 401(k) you will have reduced your income level below the Roth Cap.

For IRA purposes, earnings do not include any deferred compensation.

http://www.irs.gov/pub/irs-pdf/p590.pdf

:)