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Subject Author Date
IRA Deduction runtwoday 11-10-2007
|--> Re: IRA Deduction Barry Margolin11-11-2007
Posted by runtwoday on November 10, 2007, 5:20 am
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 Changed jobs in August. Current employer does not have
retirement or 401k plan. Previous employer had a 401k plan
which I contributed to until I left the company, but no
defined retirement plan. My modified AIG falls below phase
out threshold. Can I deduct an IRA contribution for myself
and spouse for 2007?

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by Phil Marti on November 11, 2007, 4:21 am
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> Changed jobs in August. Current employer does not have
> retirement or 401k plan. Previous employer had a 401k plan
> which I contributed to until I left the company, but no
> defined retirement plan. My modified AIG falls below phase
> out threshold. Can I deduct an IRA contribution for myself
> and spouse for 2007?

Yes. You were "covered" by a retirement plan in 2007 (the
previous employer's 401(k)), but all that means is that
you're subject to the AGI phaseouts. Since your income
falls below the phaseout level, your IRA contributions are
fully deductible.

See IRS Publication 590.

--
Phil Marti
Clarksburg, MD

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Barry Margolin on November 11, 2007, 4:21 am
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> Changed jobs in August. Current employer does not have
> retirement or 401k plan. Previous employer had a 401k plan
> which I contributed to until I left the company, but no
> defined retirement plan. My modified AIG falls below phase
> out threshold. Can I deduct an IRA contribution for myself
> and spouse for 2007?

If your AGI is below the threshold you can deduct your IRA
contribution regardless of whether you were covered by an
employer plan.

--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by D. Stussy on November 11, 2007, 4:21 am
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> Changed jobs in August. Current employer does not have
> retirement or 401k plan. Previous employer had a 401k plan
> which I contributed to until I left the company, but no
> defined retirement plan. My modified AIG falls below phase
> out threshold. Can I deduct an IRA contribution for myself
> and spouse for 2007?

If you have a pension plan at any time during the year, you
are subject to the AGI limitations. We can't determine
whether your spouse qualifies without the AGI limit because
you didn't state whether he/she participates in one through
his/her employer.

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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