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Deductible Contribution |
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Deductible contribution Amount paid into an IRA, an employer-sponsored retirement plan, or other type of retirement plan for a particular tax year that is a deduction from income for tax purposes. Deductible Contribution A contribution that one may place into an IRA, 401(k), or other retirement plan each year that can reduce one's taxable income by the same amount. That is, the deductible contribution is the portion of one's retirement contribution that is tax deductible. The IRS generally sets the limits on deductible contributions. For example, the limit on deductible contributions for 401(k) plans was $16,500 in 2009. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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