Deductible contribution

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 ?
However, if the couple's 2014 MAGI is less than $181,000, Alice can make a fully tax deductible contribution of up to $5,500 ($6,500 if she is 50 or older).
If you are currently making a monthly tax deductible contribution to WILPF via credit card, your future statements will reflect the Peace Development Fund as the vendor.
For 2012 tax purposes, deductible contribution limits are $3,100 for individuals and $6,250 for families.
Is timing of the initial deductible contribution an important factor?
If you are interested in making a tax deductible contribution to the Betty F.
Another advantage: of contributing by allotment is the convenient record of your tax deductible contribution.
For example, if the value of the meal is the same as the ticket price, persons who purchase tickets could not claim a deductible contribution.
Beginning in 1997, the Act provides that a deductible contribution of up to $2,000 may be made to an IRA for a nonworking spouse.
The plant will incorporate into its range of restaurants and / or caterers and protected under the appropriate sector: Institutions adapted (EA) and institutions and aid work (ESAT) service for La Poste can recover beneficiaries units (UB), equivalent to the use of a disabled person and deductible contribution payable to AGEFIPH (Management Association funds for the employment of people with disabilities).
Because the maximum annual addition, and thus deductible employer contribution, is $40,000 in 20002, individuals earning $160,000 or more may receive a $40,000 deductible contribution under either a profit-sharing plan, a money purchase pension plan, or a profit-sharing/401(k) plan.
Thus, for the trust or estate to take a deduction, the distributee charity must meet the same requirements as one receiving a deductible contribution from an individual or corporation, but the deduction available to a trust and estate is unlimited.
If you are single with an annual income of under $95,000, or married with a combined annual income of $150,000, you can make a non deductible contribution of up to $2,000 per year.