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Deductible Trad IRA & 401(k) Deposits


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Guest Gee Bee Fran
Posted

If a 401(k) participant earns 80k annually; deposits 10k into his company sponsored 401k plan, can he do a deductible IRA also? He is married and files a joint return with his spouse, who isn't working & earns no income. I know the IRA limit is 3,500 for '04 and phases out between 65k and 75k in joint income. The cruxt of the matter is what income is includable in this calculation? If he deducts mortgage interest and other personal deductible expenses, do they affect the IRA eligibility calculation. Thanks for any advice!! :rolleyes:

Posted

IRS Publication 590. http://www.irs.gov/pub/irs-pdf/p590.pdf

Start on page 11.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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