Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-06-2018, 12:57 AM
Junior Member
 
Join Date: Feb 2018
Posts: 2
IRA deduction for 2017

I understand you cannot take the tax deduction for an IRA if you are covered by an employers 401K. My question is regarding the word "covered". I contributed to a 401K with my employer in 2017 but I was only employed until April, and my total 401K contribution was $1400. I no longer work for that employer nor have I contributed anything additional. Am I disqualified from deducting an IRA in 2017? My MAGI will be around $80K and I'm over 50.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-06-2018, 11:28 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,102
if you are part of a retirement plan at work ("retirement plan" is checked in box 13 of at least one of your W-2s) you can still make a deductible contributions to your Traditional IRA if you are single ; For single filers who are covered by a company retirement plan in 2018, the deduction is phased out between $62k and $72k of modified adjusted gross income .you may contribute $6,500 to your IRA for 2017 ($5,500 plus an additional $1kcontribution for age 50 and over). If you can't make a deductible Traditional IRA contribution, the next best thing is a Roth IRA. The phase out for that is $118k to $133k for single If you can't do that either, the next best thing is a non-deductible Traditional IRA contribution. Be sure to fill out an 8606 if contributing any post-tax (non-deductible) money to a Traditional IRA so you don't pay tax on it again when you pull it out.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 02-06-2018, 03:19 PM
Junior Member
 
Join Date: Feb 2018
Posts: 2
Follow up question - IRA deduction

So in my case, Box 13 is checked on one of my W2's. Also, my modified adjusted gross income is around $80K. Does this mean I can't reduce my income by contributing to an IRA? And if so, what other options do I have to reduce my income? Otherwise I'm facing a $5000 tax bill.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
2017 tax returns with only $200 per month [email protected] Income 0 02-05-2018 01:31 PM
PAID vendor December 2017. They cashed it over weekend. James_Burg For 2016 0 01-29-2018 01:09 PM
2017 Tax Reform and Real Estate Tax Deduction NJTaxPayer Homeowner Tax 3 10-07-2017 07:15 AM
Should I pay estimated taxes for 2017? maconomist Estimated Taxes 1 04-10-2017 08:44 PM
Reporting 2017 Income in 2016? CaliaMoko For 2016 2 02-10-2017 10:44 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning