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Financial Planning / Foolish 401(k)s


Subject:  Re: 401 k help Date:  11/13/2002  3:05 PM
Author:  joelcorley Number:  15538 of 26309


You wrote, Now in IRS pub 590, Chapter 1 which deals with traditional IRA's, page 14, something else is stated. If you look at Table 1-2 Effect of Modified AGI on Deduction if Covered by Retirement Plan at Work - If you are covered by a retirement plan at work, use this table to determine if you modified AGI affects the amount of your deduction. The table shows that even if JCook9 contributed to a retirement plan and makes $40,000, he can still take a partial deduction. But if I were single and made $30,000/year and I contributed to my work's 401k, I could still deduct my contribution to a traditional IRA up to the maximum allowable contribution. Actually page 2 has the 2002 changes, which the ranges are $34,000-$44,000 for a single filer, $54,000-$64,000 married.

If I'm reading this wrong, tell me.


Once again you've caught me. I keep forgetting those blasted income limits. Obviously they don't affect me personally (I'm 38 years old and my income has already plateau'ed above them in my choosen profession), so I keep forgetting to consider them when I talk with someone else. Thanks for catching me.

- Joel
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