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tiny 401k contribution + IRA deduction

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Money Talk > Taxes

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tiny 401k contribution + IRA deduction  Reply with quote  

I left a company with a matching 401k plan the 3rd week of January in 2011, which resulted in a tiny $ contribution for the year and I left the retirement account with JP Morgan without rolling it over. The new company I joined doesn't have a 401k plan, so the year's contribution was small.

Given my income, I was planning to open a traditional IRA and contribute the $5k and get a tax-deduction, however Turbo tax is telling me that my income is too high and I do not quality for a deduction on my IRA contribution since I had a employer-matched 401k account.

Is there anything I can do to get around this since I've not made any 401k contributions for 11+ months in 2011??
Post Sat Mar 31, 2012 8:00 am
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The two rules are - you can't contribute to a deductibe IRA if you earn over $107,000. You can't contribute to a deductible IRA if you are a part of a 401k plan.

It sounds like you fail on both counts - I don't know of a way around them.
Post Sat Mar 31, 2012 4:11 pm
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