UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74853  
Subject: Re: midnight taxes Date: 2/11/1998 4:39 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Fundad,

<<Never a good idea, but I was close to finishing so I kept going past midnight on the taxes last night. I ran into something and I'm not sure if it's a software glitch or a mushware glitch (as in mush between my ears)

Anyway, our AGI's close to 50K, and we're in a 401K plan, so the deductability of our traditional IRA's '97 contributions is fading out. I used a 'what if' approach, plugging in different numbers to find the highest deductible contribution, and the software would let me split a total of $480 into the taxpayer and spouse IRAs (240 each) but wouldn't let me put in 0 & 480.

I thought the IRS was more concerned with the total, and didn't care about how it was distributed.

So is this a software glitch, a mushware glitch or an IRS feature?>>

Actually, if you read IRS Pub 590, Individual Retirement Arrangements, you will see that the worksheet for a working couple must be completed individually. When you do the individual worksheets, you will as an individual be limited in the amount that can be considered a deductible contribution to your own IRA. In your case, the deductible part is split evenly between the two of you.

Regards…..Pixy

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Feste Award Winner Announced!
Congrats to the Winner of the 2013 Feste Award!
Post of the Day:
Berkshire Hathaway

Why Should Berkshire Hathaway Survive?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement