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.
References in periodicals archive ?
The Recycled Tire Research and Engineering Foundation has received 501-C-3 status from the Internal Revenue Service, positioning the foundation to receive tax deductible contributions, bequests, devices, transfers and gifts.
You can make deductible contributions to a traditional Individual Retirement Account on your 2010 return any lime before April 18.
An employer funds such a plan by making annual deductible contributions for eligible workers; the employees are not taxed on the contributions.
If you had self-employment income in 2002, for instance, set tip a simplified employee pension (SEP) before you file your 2002 tax return, including extensions, and make deductible contributions.
Your Traditional account has been open for a short period of time and most of the balance is comprised of non-deductible contributions: Since there is little growth in your current IRA and since no taxes are owed on non-deductible IRA contributions, your tax liability will be low at conversion because taxes are only paid on the growth funds and on the deductible contributions.
Thus, if a married couple is eligible to make deductible contributions to an IRA, they may make a total deductible contribution of up to $4,000, even if one of the spouses does not have any compensation for the year of the contribution.
As with any trust whose funding is actuarially determined, the trust's earnings and the benefits actually paid to participants and beneficiaries may vary from the assumptions used to calculate deductible contributions.
Individuals who are not eligible to make deductible contributions to a traditional IRA or to make contributions to a Roth IRA still may make non-deductible contributions to a traditional IRA.
This program allows independently owned ACA- accredited camps to accept tax deductible contributions for a scholarship endowment to provide funds to lower-income campers to attend their camps.
corporations, trusts, community chests, funds, or foundations are eligible to receive deductible contributions under section 170 of the Code.
They also say that, by failing to offer front-end incentives like deductible contributions, the proposals ignore the needs of financially crunched families.
Deductible contributions may not recognize future medical inflation or increased utilization of medical services