The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/the-taxable-income-i-mentioned-was-joint-income-27390567.aspx

Subject:  Re: IRA AND TAX QUESTIONS Date:  1/28/2009  5:37 PM
Author:  aj485 Number:  65234 of 75338

the taxable income i mentioned was joint income. i contribute to my 401(k), my wife contributes to her 403(b). i just didn't know if one could have both 401(k)/403(b) and an IRA and use our IRA contribution to help lower our taxable income.

At a joint wage level of $100k after 401(k) contributions, and with each of you eligible for a company sponsored retirement plan, it is unlikely that your MAGI would allow you to deduct traditional IRA contributions. However, at lower MAGI levels, it is possible to both be eligible for a 401(k) or 403(b) and deduct traditional IRA contributions.

So, it is possible, but probably not for you.

Note: the deductibility for traditional IRAs with respect to employer sponsered retirement plans only takes into account if you are eligible for such a plan, not if you contributed to the plan.

AJ
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us