If you make over the IRA max income amount and you...
# generalc
curved-toothbrush-84425
08/09/2023, 2:38 AMIf you make over the IRA max income amount and your employer offers a 401k but you don't participate, can you get a deduction for tIRA contributions? Or would that only be allowed if your employer doesn't have a retirement plan at all?
🧡 1
curved-toothbrush-84425
08/09/2023, 2:39 AMFollow up to that, what about a case where your employer has a 401k but you cant contribute much or at all as a 'Highly Compensated Employee' if most employees don't use the 401k at all?
e
eager-smartphone-39564
08/09/2023, 2:46 AMYes to the first question - it does not matter why your 401(k) contribution is disallowed.
Any amount credited to your account in a given year renders you an “active participant” and subjects you to the income phaseouts. If box 13 on your W-2 is checked, that means you were an active participant for that year.
c
curved-toothbrush-84425
08/09/2023, 3:05 AMGot it thanks!
m
mysterious-tomato-10057
08/09/2023, 2:30 PMIf you make over the income that allows IRA deductions, how do you plan to get a deduction? Maybe I am misreading the question
e
eager-smartphone-39564
08/09/2023, 2:43 PMHe is referring to the concept that the income limits only apply to people who participate in an employer-sponsored retirement plan
m
mysterious-tomato-10057
08/09/2023, 2:50 PMAh. 👍