Deduction update
The Personal Finance section of the Daily Herald/ USA Today recently featured a story on the five myths of 401(k) investing. The second item said the IRS allows savings "twofers as well as the ultimate tax savings triumvirate - contributing to a 401(k), Roth or Traditional IRA as long as you follow contribution and deduction limits."
Although this was true up until a few years ago, changes were made which now add a very tricky caveat.
If your employer offers a retirement plan/pension plan, noted in box 13 of your W-2, you may not take a tax deductible Traditional IRA. You may contribute to a Roth or Traditional IRA, but none of it is tax deductible.
Richard Francke
Bartlett
Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked.
If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.