If I put money in a 401k program, can I count that towards an IRA deduction?

  • Thread starter eNtRopY
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eNtRopY

[SOLVED] Tax Question

If I put money in a 401k program, can I count that towards an IRA deduction?

eNtRopY
 
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  • #2
IRA and 401k are two different species, even though they both look the same.

They should both be tax deferred (some IRA are non taxable :D) and thus ignored for federal income tax (although I have no Idea about state income tax, seeing as how we have none here in the totally badass state of Texas :).

Just keep throwing as much as you can into both of them, and you will be happy about it later on! Very happy indeed.
 
  • #3
: No, contributions to a 401k program cannot be counted towards an IRA deduction. These are two separate retirement accounts with different contribution limits and tax benefits. Contributions to a 401k are deducted from your taxable income for the year, while contributions to an IRA can be deducted from your taxable income if you meet certain income requirements. It is important to consult with a tax professional to determine the best retirement savings strategy for your specific situation.
 

1. Can I contribute to both a 401k and an IRA in the same year?

Yes, you are allowed to contribute to both a 401k and an IRA in the same year. However, the amount you contribute to your 401k may affect the amount you can contribute to your IRA.

2. How much can I contribute to my 401k and IRA in a year?

The maximum contribution limit for a 401k in 2021 is $19,500 for individuals under 50 years old and $26,000 for individuals 50 years or older. The maximum contribution limit for an IRA in 2021 is $6,000 for individuals under 50 years old and $7,000 for individuals 50 years or older.

3. Can I deduct my 401k contributions from my taxes?

Yes, your contributions to a traditional 401k are tax deductible. This means you can reduce your taxable income by the amount you contribute to your 401k.

4. Are there income limits for deducting my IRA contributions?

Yes, if you are covered by a workplace retirement plan, there are income limits for deducting your IRA contributions. For single filers, the income limit is $66,000 in 2021. For married couples filing jointly, the income limit is $105,000 in 2021.

5. Can I get a tax deduction for both my 401k and IRA contributions?

Yes, you can get a tax deduction for both your 401k and IRA contributions, as long as you meet the eligibility requirements and do not exceed the contribution limits. However, you cannot double-dip and deduct the same contributions for both accounts.

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