On joint tax returns, covered workers are shut out from deductible IRA
contributions with MAGI of $118,000 or more for 2016 ($119,000 for 2017).
By combining the standard deduction ($6,300) and the maximum deductible IRA
contribution ($5,500) for 2016, a child could earn $11,800 of wages and pay no income tax.
While many of the past articles cited below relate to the conversion of a traditional deductible IRA
to a Roth IRA, the same considerations are important in evaluating an in-plan Roth rollover under the provisions of the ATRA.
If your client hasn't yet made a 2013 IRA contribution and you are wondering if they can make a deductible IRA
contribution now, here are the three questions you must ask to find out the answer.
One way to shelter D's investment income is by making a deductible IRA
Is the client eligible for a deductible IRA
and were contributions made to it?
The maximum annual deductible IRA
contribution for an individual is the lesser of (a) the maximum annual contribution amount or (b) the individual's earned income1 The maximum annual contribution amount is $5,000 in 2009.
For married individuals filing a joint return, if only one spouse is a participant in an employer-sponsored plan, the limit on deductible IRA
contributions applies only to the participant spouse.
35)] in a fully tax deductible, fully tax deferred vehicle such as a contribution to an IRC Section 401(k) plan, deductible IRA
, a qualified pension plan, profit-sharing plan, IRC Section 403(b) TDA, SEP or SAR-SEP IRA, or SIMPLE IRA.
If you are unable to make a deductible IRA
contribution because of "active participation" in an employer provided plan, your spouse may still be able to make a deductible IRA
Open an IRA--put up to $2000 annually into a traditional, tax deductible IRA
, or take advantage of the new Roth IRA to avoid future taxes.
The new law relaxes the adjusted gross income (AGI) restrictions for active participants in qualified employer retirement plans, allowing more taxpayers to take advantage of deductible IRA