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.
[[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).TMF TaxesRoyWant to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. There is still time available to do that tax planning (and tax saving) before the end of the year. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Pay special attention to the "archives" section. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
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