Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




Pre Tax IRA

Reply to topic
Money Talk > Taxes

Author Thread
SethNaga
New Member


Cash: $ 1.80

Posts: 8
Joined: 16 Jan 2006

Pre Tax IRA  Reply with quote  

I worked for 6 months (Jan 05 to Jun 05), but did not participate in the company 401k.

Can I contribute Pre Tax IRA of 4000$ ?

Today I received my W2 and they have ‘Check Mark’ in box 13 (Retirement. Plan Box) Is this a mistake?

Thanks for your help
Post Fri Feb 03, 2006 3:33 am
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

I think his main concern is the way box 13 on the W2 is marked. And I'm sorry, but I don't have an answer. I think it means that Seth was covered by a retirement plan his employer contributed to during his employment. There should be some fine print on the back of the W2 that's supposed to explain it, but frankly, I looked at one of my old W2s and couldn't make heads or tails of the explanation. There may be some situations in which his ability to contribute to an IRA may be affected. Normally, not. Seth may have to go to his local IRS office to find out the answer.

~Tim~
Post Fri Feb 03, 2006 10:13 pm
 View user's profile Send private message
efflandt
Senior Member


Cash: $ 80.45

Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
 Reply with quote  

If you had the opportunity to participate in a 401k (whether you participated or not) you are considered covered by a qualified employee plan. Whether you can still make a tax deductable contribution to an IRA depends upon your income.

Assuming single the AGI limits are:
$45k or less - fully deductable
$45-55k - partially deductable
over $55k - not deductable (if you qualify for Roth IRA, that would be a better choice)
Married income limits are higher

For details, read through IRS publication 590, especially the section "How Much Can You Deduct?" beginning http://www.irs.gov/publications/p590/ch01.html#d0e1311 until you hit "What If You Inherit an IRA?"
Post Sat Feb 04, 2006 1:49 am
 View user's profile Send private message
SethNaga
New Member


Cash: $ 1.80

Posts: 8
Joined: 16 Jan 2006

 Reply with quote  

Thanks every one for your reply

After reading the postings, I now know that I cannot claim Pre tax IRA

I will open a Roth IRA Account
Post Sat Feb 04, 2006 2:04 am
 View user's profile Send private message
MattL
Senior Member


Cash: $ 46.85

Posts: 234
Joined: 25 Jun 2005

 Reply with quote  

quote:
Originally posted by SethNaga
Thanks every one for your reply

After reading the postings, I now know that I cannot claim Pre tax IRA

I will open a Roth IRA Account


Also keep in mind that you can contribute for 2005 up until April 15. That way you can also contribute an additional $4k for 2006.

Debt Elimination
Post Sat Feb 04, 2006 9:04 pm
 View user's profile Send private message Visit poster's website
MattL
Senior Member


Cash: $ 46.85

Posts: 234
Joined: 25 Jun 2005

 Reply with quote  

quote:
Originally posted by muneepenee
1. yu kan send 4k$ tu ira provided yer 2005 inkum >=4k$.
if kumpanee hav 401k or penshun or wotever dont matter.
if yer inkum >ira limit (bout 110,000$), sum or all av ira $ is not deduktabel from inkum tax. But yu kan still put it in.
And yu hav til 15 Apr 06 tu duit.


Dude...can you spell normally? This isn't a 13 year old's chat room. It's kind of irritating.

Debt Elimination
Post Sat Feb 04, 2006 9:06 pm
 View user's profile Send private message Visit poster's website
patticaryl
Member


Cash: $ 2.10

Posts: 10
Joined: 18 May 2005

Don't bother reading posts from muneepenee  Reply with quote  

I find his posts so irritating that if he had any valuable input or worthy knowledge, it's not worth deciphering what he's trying to say. Anyone writing like that has to be such a kid, what would he know anyway.
Post Tue Feb 07, 2006 3:11 pm
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016