Discussion:Trad IRA, SE covered by employer plan?
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Discussion Forum Index --> Advanced Tax Questions --> Trad IRA, SE covered by employer plan?
Discussion Forum Index --> Tax Questions --> Trad IRA, SE covered by employer plan?
| 29 March 2008 | |
| I cannot believe that I have not run into this situation before. MFJ TP has MAGI > $160,000, virtually all of which is from Schedule C. He's made both designated Roth and deductible contributions to his Individual 401(k) and also made a $5,000 contribution to his traditional IRA. ProSeries is allowing the total $5,000 contribution and I didn't think that was right. I (perhaps ridiculously) thought that indicating that by tying the Sch C, 401(k) that the program would mark the box 'covered by a retirement plan at work'. It did not and when I manually checked the box the IRA was gone, as I had expected it to be. Then my question became, if you are self-employed and have a retirement plan tied to that by the contributions being based upon that net income, wouldn't you be considered 'covered' and thus the IRA contribution limited/eliminated? I couldn't find this anywhere. Thank you. | |
TheTinCook (talk|edits) said: | 29 March 2008 |
| You are correct that it counts as covered. ยง219(g)(5) or the Form 1040 line 22 instructions, whichever. | |
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