nondeductible IRA contributions and $45k limit for d/c plans

[Guest kprhok]

I received a question today regarding the application of Section 415 to nondeductible IRA contributions.

It has been suggested that the $45k limit (or possible some other qualified plan limitation - 402(g) for example) applies to IRAs, and since the individual has maxed out the 45k limit this year, she is not able to make a nondeductible IRA contribution.

I am not aware of any rule (qualified plan rules or otherwise) that would prohibit contribution to a nondeductible IRA if the client has income and desires to do so.

Am I missing anything? Thanks for responses.

[masteff]

Do you mean a deemed IRA or an IRA outside the plan? Either way, the answer is no, IRAs are outside of the annual additions limit (and 402(g)).

Refer them to IRS Publication 590.

[Guest kprhok]

Thanks. It is an IRA outside of any plan. I appreciate the comment.