Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




tiny 401k contribution + IRA deduction

Reply to topic
Money Talk > Taxes

Author Thread
austunner
First Time Poster


Cash: $ 0.25

Posts: 1
Joined: 31 Mar 2012

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
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 719.80

Posts: 3501
Joined: 21 May 2006
Location: arizona
 Reply with quote  

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
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016