Regular ira and Simple in the same year
My Client started with a traditional IRA In 2024. He made Contributions of $3,800. He then set up a Simple IRA During the year and Made Full contributions including Catch-up.
Can his Traditional IRA Contributions be counted as A deductible Contribution or does he have to go as a Non Deductible contribution.
Thank You
Permalink Submitted by Alan - IRA critic on Mon, 2025-04-07 12:57
It depends on his modified AGI. If that income limit to deduct a TIRA contribution is exceeded, then the contribution will be non deductible.
If non deductible, but client is eligible for a Roth contribution which has higher income limits, the TIRA contribution could be recharacterized as a Roth contribution. If income is also too high for a regular Roth contribution, then it will either have to be removed or Form 8606 will have to be completed to show the contribution as non deductible.
Tax programs will typically identify if the contribution can be deducted or not.