<dingodog_1979[at]yahoo.com> wrote:
- quote -

If your joint AGI is below the phaseout start, then you can
deduct your IRA contributions.

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

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dingodog_1979[at]yahoo.com wrote:

- quote -

Since you're below the phaseout threshold, why does it matter?
You can deduct the IRA contribution whether you participated
in the 401k or not.

--
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 was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Both my husband and I were eligible to participate in the
401(k) in 2006, however none of us participated. Can we
still fully deduct our $8,000 IRA contributions (we're MFJ
and below the AGI phaseout threshold)? All publications I
read talk about active participants in 401(k) not being able
to deduct IRA contributions, however it's not clear to me as
to who is an active participant - one who actually
contributed to 401(k) or one eligible to contribute. Thanks!

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >