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Old 03-24-2016, 07:52 PM
 
19 posts, read 16,995 times
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I am getting it with a high tax bill this month. I am married filling jointly and we both have employee sponsored 401K which we are maxing out at 18k.

My AGI is greater than >250k

1.) Can I make $5500 contribution to IRA account?
2.) Can this be used on return for year 2015? I have been told that I can open IRA account until April 16th
3.) Since we are married - Can we make contribution of $5500+$5500?
4.) will these contribution make any difference to my tax bill.

Is there retirement calculator(s) that calculate the impact on tax with 401k and IRA account?

This forum has been helpful for me in the past. Thank you in advance.

Last edited by deepu77; 03-24-2016 at 08:12 PM..
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Old 03-24-2016, 08:04 PM
 
Location: Idaho
1,458 posts, read 1,161,199 times
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Here is the link to IRS webpage: 2015 IRA Deduction Limits - Effect of Modified AGI on Deduction if You Are Covered by a Retirement Plan at Work

http://tinyurl.com/hwz6zaw

at your AGI level and with 401K, you can only contribute to IRA with post-tax income (i.e. no tax deduction)

so the answer is yes to your question 1, 2 & 3 and no to question 4.
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Old 03-24-2016, 08:07 PM
 
19 posts, read 16,995 times
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Quote:
Originally Posted by BellaDL View Post
Here is the link to IRS webpage: 2015 IRA Deduction Limits - Effect of Modified AGI on Deduction if You Are Covered by a Retirement Plan at Work

http://tinyurl.com/hwz6zaw

at your AGI level and with 401K, you can only contribute to IRA with post-tax income (i.e. no tax deduction)

so the answer is yes to your question 1, 2 & 3 and no to question 4.

Thank you very much for the quick reply.

I kind of understood this but there are no calculators online to calculate the effect of 401k/IRA on tax deductions.
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Old 03-26-2016, 06:22 PM
 
Location: Florida
4,382 posts, read 3,724,411 times
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Do a back door ROTH. Will save thousands in future taxes.None now.
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Old 03-27-2016, 07:21 PM
 
29 posts, read 22,181 times
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Have you tried these, by chance?
https://scs.fidelity.com/products/mo...ira-calc.shtml
https://www.calcxml.com/calculators/...r?skn=#results
https://turbotax.intuit.com/tax-tools/calculators/ira/ (being updated as of this writing)

I think it'd be hard to figure the tax effects of IRA/401(k) contributions alone without also including other factors like AGI, types of income, and other deductions.
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Old 03-29-2016, 07:53 PM
 
Location: Maryland
282 posts, read 306,763 times
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Quote:
Originally Posted by BellaDL View Post
Here is the link to IRS webpage: 2015 IRA Deduction Limits - Effect of Modified AGI on Deduction if You Are Covered by a Retirement Plan at Work

http://tinyurl.com/hwz6zaw

at your AGI level and with 401K, you can only contribute to IRA with post-tax income (i.e. no tax deduction)

the answer is yes to your question 1, 2 & 3 and no to question 4.
I agree with the above. But look into contributing to a ROTH IRA. I don't know if your married/income reach any cut offs, and it won't change your tax situation (after tax contribution). But I (single) couldn't get an IRA tax deduction, so I started a ROTH IRA.

The "back door" conversion is also worth considering for long term planning to get a ROTH IRA to increase more than the yearly regular contribution(s).
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