reg tax returns

[vagabond]

please help me understand - for married filing jointly if my MAGI is > 115000 k  and both myself and DW have contributed some amount to respective 401k's @ work ( though didnt max those ) , can we not deduct the traditional IRA contributions for 5.5k each.

[matchewed]

http://www.irs.gov/pub/irs-pdf/p590.pdf

In particular go to page 12 where they outline deductions and how they are affected by employer sponsored plans (more information on page 14).

[Ashcons]

MFJ MAGI > 115k = no deduction
http://www.irs.gov/Retirement-Plans/2013-IRA-Deduction-Limits-Effect-of-Modified-AGI-on-Deduction-if-You-Are-Covered-by-a-Retirement-Plan-at-Work

[matchewed]

A much better answer than mine. :)

[vagabond]

thanks all for your replies. With no deductions , that gives zero incentive to contribute to traditional IRA.

Also lesson learnt the hard way for this year - will need to be more tax efficient for next year.

Was hoping if there was a way to somehow make up for the missed opportunity to contribute the difference of 17.5k- partial contribution made for last :-)

[jhartt3]

put it in a Roth IRA.  you can still get that tax benefit.  AND if your MAGI is over 115k you should be able to max out 401k's and Roth IRAs.