You are way over the limit for deducting for an IRA. You
did not mention working. Your IRA money is to come from
earned income not from retirement money. If either of you
are covered by a pension plan at work (I believe) the income
limit for contributing to an IRA is $50K.

Missy Doyle

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blabla[at]AOL.COM wrote:

- quote -

The fact that you received a W-2 tells me that you received
compensation in 2004 and probably (you did not tell us the
code in Box 12) made contributions to that employer's plan.
It only takes one day of participation to be treated as an
active participant in a retirement plan. Receipt of your
military pension does not by itself preclude you from
deducting an IRA contribution. It does however increase your
income and it is your income that determines whether you can
take a deduction.

There is not enough information provided relative to the
savings bonds and your reference to a pre-paid plan to make
a determination.

All of the tax benefits available for higher education
expense can be found in IRS Pub 970.
http://www.irs.gov/publications/index.html

--
Alan
http://taxtopics.net

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I'm retired military and recieve a 1099-R. in Block 7 it
shows my distribution as 7, Normal.

I had a 401k from an former employer last year, whom i no
longer work for. I rolled over all my 401K money into a
triditiona IRA upon termination of that job last year. In
block 12 of his W-2 it shows an amount that went into my
401K (now rolled over).

Im using Turbo tax and want to contribute 3500.00 into an
triditional IRA for tax reasons. Of course when I try this
I see no tax advantage froem the move. Im guessing its from
either my retired military pension being treated as a
pension plan or my former employers numbers in block 12.

My total income is 121K with my taxable income as 102K Im
married filing jointly.

anyway to take an IRA deduction. I know my wife cant cause
shes covered by a retirement plan at work.

Also I cashed in 9K worth of Seris EE and I savings bonds
for my daughters pre paid college, and don't seem to get any
tax break from that either......... is that right or just
turbo tax??

guess i need to buy another house or boat

Thanks

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