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#2
02-12-2006, 12:31 AM
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 Re: Eligible to claim IRA deduction? n12345 wrote: - quote - > My spouse was employed for the first couple of months last
When you complete the worksheet you treat your spouse as a> year during which she contributed in the company 401k > account. She was unemployed for a major part of the year. > The question is - is she eligible for the $4000 deduction? > Income level etc is not an issue for us (Our combined AGI is > above the 85k threshold that would have made the deduction > automatic). The worksheet to determine eligibility for the > deduction is very cut and dry - either one is covered by a > employer sponsored plan or not. Since my spouse was not > covered by a employer sponsored plan for majority of the > year is she eligible for the deduction? taxpayer who was covered by a retirement plan. It only takes one day of coverage to be considered an active participant in a retirement plan. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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#1
02-11-2006, 06:46 PM
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| Re: Eligible to claim IRA deduction? "n12345" <nsatapathy[at]gmail.com> wrote: - quote - > My spouse was employed for the first couple of months last
No. One day of 401k eligibility is all it takes to affect> year during which she contributed in the company 401k > account. She was unemployed for a major part of the year. > The question is - is she eligible for the $4000 deduction? > Income level etc is not an issue for us (Our combined AGI is > above the 85k threshold that would have made the deduction > automatic). The worksheet to determine eligibility for the > deduction is very cut and dry - either one is covered by a > employer sponsored plan or not. Since my spouse was not > covered by a employer sponsored plan for majority of the > year is she eligible for the deduction? IRA deductibility. There's no prorating based on how long you were covered by an employer plan. -- Barry Margolin, barmar[at]alum.mit.edu Arlington, MA *** PLEASE don't copy me on replies, I'll read them in the group *** << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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02-10-2006, 08:40 PM
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| Re: Eligible to claim IRA deduction? "n12345" <nsatapathy[at]gmail.com> writes: - quote - > My spouse was employed for the first couple of months last
You're misreading the rules. If your spouse was covered> year during which she contributed in the company 401k > account. She was unemployed for a major part of the year. > The question is - is she eligible for the $4000 deduction? > Income level etc is not an issue for us (Our combined AGI is > above the 85k threshold that would have made the deduction > automatic). The worksheet to determine eligibility for the > deduction is very cut and dry - either one is covered by a > employer sponsored plan or not. Since my spouse was not > covered by a employer sponsored plan for majority of the > year is she eligible for the deduction? by a retirement plan for even a SINGLE DAY during the year, she is considered covered by a retirement plan for the purposes of figuring out how much, if any, of an IRA contribution is deductible. So "income level etc" IS an issue for you. Go back to that worksheet! :-) -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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#-1
02-09-2006, 04:13 AM
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| Eligible to claim IRA deduction? My spouse was employed for the first couple of months last year during which she contributed in the company 401k account. She was unemployed for a major part of the year. The question is - is she eligible for the $4000 deduction? Income level etc is not an issue for us (Our combined AGI is above the 85k threshold that would have made the deduction automatic). The worksheet to determine eligibility for the deduction is very cut and dry - either one is covered by a employer sponsored plan or not. Since my spouse was not covered by a employer sponsored plan for majority of the year is she eligible for the deduction? << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
| Tags |
| claim, deduction, eligible, ira |
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