Partial IRA Deduction
Traditional IRA work sheet to determine partial deduction states as follows – if the result isn’t a multiple of $10, round it to the next highest multiple of $10. For a result of $3490.20 do you round to $3500 or $3490 ?
Traditional IRA work sheet to determine partial deduction states as follows – if the result isn’t a multiple of $10, round it to the next highest multiple of $10. For a result of $3490.20 do you round to $3500 or $3490 ?
Permalink Submitted by Alan - IRA critic on Mon, 2021-02-08 17:28
Round to 3500. Since this result usually determines the allowed deduction, rounding up to 3500 will also produce a higher deduction, so rounding up in this case is actually beneficial to the taxpayer. Taxpayer may want to consider recharacterizing the non deductible portion as a Roth contribution.