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Yes, for any contribution. Phase out starts at $181k.
You're right, the working on the worksheet confused me, my bad.
Did you work through it? It's from IRS Publication 590-A.
"Modified Gross Income" is not a set number. It can vary depending on what you are talking about. That's why it says "Modified AGI for Roth IRA purposes".
How much more than 185k does your husband make? And did you really post that as a w2 box 1 figure? That would be odd
If your gross income was 190.5k your husbands make ira would drop your taxable income enough so you agi and magi would allow you to contribute to a roth. I'm not sure why you are attempting to argue about agi being impacted, they are impactedby 401k contributions
Your gross income could be 198.5 and you would still qualify
Okay. okay.
Let me try this again... if we opened up a IRA and deducted $11k today. Then on our form 1040 for 2014 our AGI will have today's $11k deducted... correct?
If that's the case, then we will be fine.
But you guys are all showing me all these other deductions for agi (tuition, self-employment, adoption, ira, etc.. but I still don't see 401k listed... unless a 401k is also called an individual retirement account... but still there doesn't seem to be getting around that the agi on my 1040 is above $181k).
Lowexpectations, I'm not sure how you're contributing free and clear if we're not.
Let me try this again... if we opened up a IRA and deducted $11k today. Then on our form 1040 for 2014 our AGI will have today's $11k deducted... correct?
If that's the case, then we will be fine.
But you guys are all showing me all these other deductions for agi (tuition, self-employment, adoption, ira, etc.. but I still don't see 401k listed... unless a 401k is also called an individual retirement account... but still there doesn't seem to be getting around that the agi on my 1040 is above $181k).
Lowexpectations, I'm not sure how you're contributing free and clear if we're not.
200k in gross income - 35k for 401k = agi low enough to contribute to a roth
If you contributed 11k to a regular Ira you wouldn't be able to contribute to a roth no matter what your income is
You're right, the working on the worksheet confused me, my bad.
Did you work through it? It's from IRS Publication 590-A.
"Modified Gross Income" is not a set number. It can vary depending on what you are talking about. That's why it says "Modified AGI for Roth IRA purposes".
Yes, I just looked at it. It's talking about line 32 on form 1040... for 2013 we had nothing marked for line 32 because we didn't/don't have an IRA.
I think this line 32 could make all the difference if I understand it correctly.
Like I just wrote to lowerexpectations....
If we open a roth 401k today and contribute 11k, then those 11k will be itemized on line 32... or will they?
But this takes us back to deductions and since our income is above $118k I didn't think we could deduct.
Let me try this again... if we opened up a IRA and deducted $11k today. Then on our form 1040 for 2014 our AGI will have today's $11k deducted... correct?
If that's the case, then we will be fine.
You're not going to be able to deduct 11k. If you do traditional IRAs, hubby cannot deduct his contribution. You may be able to deduct part of yours (same phase out range, 181k to 191k).
But then you have already made your 2014 IRA contributions. You can convert traditional to Roth, but that's it.
Quote:
But you guys are all showing me all these other deductions for agi (tuition,
self-employment, adoption, ira, etc.. but I still don't see 401k listed...
unless a 401k is also called an individual retirement account... but still there
doesn't seem to be getting around that the agi on my 1040 is above $181k).
401k isn't listed because it is already deducted from Box 1 of W-2, and that is what you report under "wages" in the first place.
You're not going to be able to deduct 11k. If you do traditional IRAs, hubby cannot deduct his contribution. You may be able to deduct part of yours (same phase out range, 181k to 191k).
But then you have already made your 2014 IRA contributions. You can convert traditional to Roth, but that's it.
401k isn't listed because it is already deducted from Box 1 of W-2, and that is what you report under "wages" in the first place.
That's my point to lowerexpectations! 401k is already deducted, but he says it's not.
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