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[SOLVED] Tax Question
If I put money in a 401k program, can I count that towards an IRA deduction?
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If I put money in a 401k program, can I count that towards an IRA deduction?
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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.
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.
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.
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.
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.