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Want daughter to start a retirement account. Will it be deductible for this year's taxes? Is there an income limit on taking a deduction for putting money into retirement account?
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Want daughter to start a retirement account.

Let's hope she has the good sense to listen.

Will it be deductible for this year's taxes?

Try to avoid using "this year" when discussing taxes. It's hard to tell whether you're talking about 2007 or 2008. Assuming you're talking about 2007, she can still make contributions through 4/15/2008 or, in some cases, later. They may or may not be deductible. They also may or may not make her eligible for a tax credit in addition to the deduction.

Is there an income limit on taking a deduction for putting money into retirement account?

For some people, yes.

See IRS Publication 590. If she's self-employed, also see Publication 560.

Phil
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TMFPMarti:

{{{Want daughter to start a retirement account.}}}

Phil: "Let's hope she has the good sense to listen."

Also, let us hope that daughter has earned income to support a contribution (or is married to a husband who has the earned income to support the contribution.

{{{Will it be deductible for this year's taxes?}}}

"Try to avoid using "this year" when discussing taxes. It's hard to tell whether you're talking about 2007 or 2008. Assuming you're talking about 2007, she can still make contributions through 4/15/2008 or, in some cases, later. They may or may not be deductible. They also may or may not make her eligible for a tax credit in addition to the deduction."

{{{Is there an income limit on taking a deduction for putting money into retirement account?}}}

"For some people, yes.

See IRS Publication 590. If she's self-employed, also see Publication 560."


As always, I have little to add to Phil's excellent posts.

Regards, JAFO
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