Deductible Trad. IRA
Hello.
Customer retiring May 1. Going to max out on 401k before he leaves in order to keep taxable income down. Planning to use Obamacare to receive significant subsidy if income stays under $60K. Can he and his wife make a deductible traditional IRA contribution for 2015 if they stay below the income limits?
Permalink Submitted by Alan - IRA critic on Fri, 2015-04-17 15:31
As long as their MAGI is below the deduction threshold and they have earned income, they can deduct TIRA contributions for 2015.
Permalink Submitted by Brian Bishop on Fri, 2015-04-17 16:53
So, to confirm, an individual (if they fall below the income threshold) can make maximum salary-deferral contributions to an employer sponsored retirement paln AND also make a deductible contribution to a Traditional IRA?
Permalink Submitted by Alan - IRA critic on Fri, 2015-04-17 17:03
Yes, and the higher the salary deferral, the more likely they will fall below the income limits.