"rvsw" <rvsw[at]hotmail.com> wrote:

- quote -

Amount of time in a plan has no bearing on deductibility of
an IRA contribution. If you were eligible to participate,
the deduction may be limited due to AGI.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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rvsw <rvsw[at]hotmail.com> wrote:

- quote -

If you were in the 401k or any employer pension plan for
even one day during 2004, it is treated as if you
participated the entire year.

If you don't qualify to deduct your IRA contribution, but
are elegible for a Roth IRA, you might consider a Roth IRA.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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rvsw wrote:

- quote -

Could you possibly elect NOT to participate in the 401K
until beginning in 2005? That MIGHT allow you to make a
maximum deductible IRA contribution for 2004. But check this
out carefully to make sure your employer agrees that you are
a NON participant for 2004.

Comment: I'm not sure it is very "nice" for employers to
start elective deferral plans this late in the year. Chances
are it will screw up the employees' ability to pursue other
options (as demonstrated in this post). Why not wait until
the first of the year to launch the plan???

MTW

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vsw[at]hotmail.com (rvsw) wrote:

- quote -

Are you sure you can't take 100% to the 401k for the balance
of the year? Might not be $13000, but it's a start!

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- quote -

You must look to your AGI and your filing status in order to
DEDUCT the IRA. You can always contribute unless you are
70.5 years of age.

Helen, EA in PA
Director, NAEA; Immediate Past President, PSEA; Tax Expert, AOL
Enrolled Agents - THE Tax Professionals

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My employer has started 401(K) program from November 2004.
As a result, I am unable to contribute to the max limit of
$13000. Can I contribute to traditional IRA and hope that it
will be deductible? Under the current requirements, a single
person with a 401(K) at work should have an income less than
41999 to be eligible for traditional IRA contribution to be
deductible.

However, given the fact that I did not have an opportunity
to contribute to 401(K) for the first 10 months and that I
cannot contribute more than paycheck to 401(K), there is no
way I can max out my 401(K) and am therefore hoping that
there is a provision somewhere that allows me to contribute
to IRA for financial year 2004

Thanks for any suggestions

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