Deductible Ira And 401k

[Guest Moneypenny]

I have a 401k plan at work and a regular IRA funded through years of self employment. Last year I had 14000k of outside income reported on 1099s (outside commissions). Can I fund my regular IRA up to 3000 this year as I am over 55? (I already did so for 2002 and just want to make sure I am not making a mistake)

apologies if this has been asked but a scan of the threads did not show this variation.

[Guest kdm]

Hey moneypenny, we need some clarification. First, is your filing status sinlge or married filing joint? Second, was a contribution made to the 401(k) in 2001? 2002? Third, was 14K the amount of net schedule C income from self-employment?

sincerely,

007

[Guest Moneypenny]

Answers to above:

1. married filing jointly

2. I paid $3000 for tax year 2002 into an existing traditional IRA in order to get an additional year of growth (well, lately maybe not)

3. I also paid $2000 into the same existing traditional IRA for the tax year 2001 last fall.

4. This outside income will be reported on a Schedule C but my deductions are few so I would like to take advantage of the deductions if I can. There will definitely be more than 3K of net income. Just as there was definitely more than 2k of net income last year.

[Guest kdm]

We still need to know if dollars were contributed to your 401(k) at your other place of employment for years 2001 and 2002? Also was your spouse covered by a retirement plan at work? and what is your Adjusted Gross Income?

Thanks

[JAMES PATRICK]

Since you are OVER 50 you can contribute $3500 this year.

Deductiblity, of course, depends on filing status and AGI.