Author Topic: Do we qualify for a traditional IRA? Taxes  (Read 1911 times)

medinaj2160

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Do we qualify for a traditional IRA? Taxes
« on: March 04, 2014, 05:06:57 PM »
Me and my wife make a total of $120,000 a year. This year we will max out the 401Ks for the first time; so we will saving $35,000 + the match ($38,000).

I want to try to pay as little taxes as possible and I am wondering if we can contribute to a traditional IRA. We have access to a HSA account which I believe we can contribute a max of $6000 but we are not contributing. We live in South Carolina.

Thanks

MDM

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Re: Do we qualify for a traditional IRA? Taxes
« Reply #1 on: March 04, 2014, 06:00:55 PM »
Check the IRS web site for IRA contribution limits.  There are various rules depending on your specific situation.

DougStache

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Re: Do we qualify for a traditional IRA? Taxes
« Reply #2 on: March 04, 2014, 06:48:07 PM »
You have a situation similar to mine, although we have less income and only one 401k to contribute to.  Your MAGI needs to be less than $96,000 to contribute to a 401k and a traditional IRA.  Napkin math tells me your MAGI is ~$120,000 - $35,000 = $85,000, give or take for other adjustments. 

So, yes, you can contribute to Traditional IRA's and take another chunk off your tax bill.


medinaj2160

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Re: Do we qualify for a traditional IRA? Taxes
« Reply #3 on: March 04, 2014, 07:18:19 PM »
Check the IRS web site for IRA contribution limits.  There are various rules depending on your specific situation.

thanks

medinaj2160

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Re: Do we qualify for a traditional IRA? Taxes
« Reply #4 on: March 04, 2014, 07:21:37 PM »
You have a situation similar to mine, although we have less income and only one 401k to contribute to.  Your MAGI needs to be less than $96,000 to contribute to a 401k and a traditional IRA.  Napkin math tells me your MAGI is ~$120,000 - $35,000 = $85,000, give or take for other adjustments. 

So, yes, you can contribute to Traditional IRA's and take another chunk off your tax bill.

That's what I thought...

So I can possibly deduct 11K and 6K from the HSA, right?

Is there a good tax calculator to see what difference does it make to max out all my tax deductible accounts vs just maxing out the 401k? I want to see how much money I would be leaving on the table.


Cheddar Stacker

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Re: Do we qualify for a traditional IRA? Taxes
« Reply #5 on: March 04, 2014, 07:28:37 PM »
This one is pretty quick, easy, and accurate.

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/