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Financial Planning / Tax Strategies
|Subject: Re: IRA deductions for non 401k||Date: 12/16/1998 8:07 PM|
|Author: TMFTaxes||Number: 7277 of 122319|
[[Do the same IRA deductibilty rules apply for a state employee who IS a contributor to their state
sponsored retirement plan. It is not a 401k but a state administered pension.]]
Yup...they sure do.
You are considered a "participant" in a qualified pension/profit sharing/deferred compensation plan. That being the case, the deductibility of your regular IRA contributions may be limited by your AGI.
BUT...you may be able to use a Roth IRA contribution instead. There are still AGI limits that you must meet in order to make a Roth IRA contribution, but they are generally much higher than the IRA deductibility limits.
For additional reading on the IRA deduction limits AND the Roth IRA AGI limitations, see my posts on those subjects in the Taxes FAQ area (archives section).
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