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JimA asks:

I am wondering if I have the following correct. I'm a 54 and single and receive a salary of $40k (and have 6% deducted for the company 401k) - the new IRA limit is $3k (plus $500 for over 50) and the range for reducing the deductible contrib is $34k - $44k (at 30%) - my box 1 taxable income would be $37,600 (40 - (40*.06))=$6,400 * 30% = $1,920 allowed deductible IRA contrib plus $500 = $2,420 (all a deductible contribution to my traditional IRA). I hope I'm right so far. And I can also contrib $1,080 to my Roth IRA (not deductible). Total IRA contributions (ded and non-ded) $3,500.

Do I have this correct?

You should complete the worksheets found on pages 16 and 17 of IRS Publication 590 (Individual Retirement Arrangements) available for download at That will tell you your allowabe deductible contribution to a traditional IRA. Then complete the worksheet on page 50 of the same publication for the allowable contribution you may make to a Roth IRA.

I'd do the math for you, but you have all the pertinent numbers.

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