No. of Recommendations: 0

<<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.


Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.