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Old 03-14-2007 | 08:38 AM
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Default IRA limit

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
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Old 03-14-2007 | 09:04 AM
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http://www.investopedia.com/articles.../03/011603.asp


-LAFF
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Old 03-14-2007 | 01:11 PM
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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.
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Old 03-14-2007 | 06:48 PM
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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

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