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Subject:  Re: 1997 IRA Qualification Question Date:  12/18/1997  1:57 PM
Author:  drbear Number:  858 of 93709

Sonoma wrote:
I need some advice on the details of opening an IRA. My wife and I both work, and our combined income for '97 will (probably) be just over $100,000. Neither of us are eligble for 401(k)'s in 1997, but both of us will be in 1998. Can we both open an IRA for 1997 and deposit $2,000 each into it before taxes, or will it be a non-deductable contribution? Thanks in advance for your help.>>

The key to determining whether you can make a deductible contribution for 1997 is whether or not you were eligible at any point in 1997 for a 401(k) or other qualified retirement plan (the benefits offices can tell you if you are not sure). If you weren't eligible, you can make either a deductible or non-deductible contribution. If you were eligible, your 1997 contribution would have to be non-deductible.
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