State of Massachusetts forced retirement savings
In MA., state employees are forced to participate and contribute to the State’s pension system. Vesting completes after 10 years. Does this type of plan affect IRA deductibility.
Example, state employee makes $60k. Self employed spouse (S-corp) nets $125k and does not have a plan. I assume self employed spouse can deduct, but state employee cannot?
Permalink Submitted by Alan - IRA critic on Tue, 2013-03-12 20:40
State employee cannot take an IRA deduction, but spouse could if MAGI was less than 183k. Between 173k and 183k the deduction is pro rated. These are the 2012 MAGI figures.