Guest VicRoach Posted January 25, 2008 Posted January 25, 2008 i'm eligible for a 401k plan. if i fall below the thresholds for the IRA can i max out both for 2008. $15,500 in the 401k and $5,000 into the ira?
masteff Posted January 25, 2008 Posted January 25, 2008 Yep, as long as you're under the income threshholds for the IRA deduction, you can max out both. IRS Publication 590 has helpful information (if you're not already aware of it ) http://www.irs.gov/pub/irs-pdf/p590.pdf Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
Appleby Posted January 25, 2008 Posted January 25, 2008 Technically, they are two separate issues…I think I know what you mean, but for the benefit of someone who may be new to this area... You can contribute the maximum to both. Contributing the maximum is not affected by the MAGI threshold. However, since you are an active participant, your ability to claim a deduction for the IRA contribution depends on your tax filing status and your MAGI. In sum, the thresholds affect your eligibility to deduct the contribution, not your eligibility to contribute to your IRA Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com
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