IRA limit
#1
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
I am recieving different answers from " Tax professionals", and was wondering if anyone was in this position before and what answers they recieved.
thanks
#2
#4
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
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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