Question

IRA contribution to lower tax

Forum|Forum|4 years ago
April 15, 2022
1 reply
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Hi everyone,

I am filing married filling joinly and we are below 40 years old. My Company has 401k plan but they do not match, therefore I did not contribute to the plan as well. Since my income is over 250k can I now contribute to IRA account to reduce tax? Thanks!

M

Mike9241

no contribution. your high AGI phases out any IRA contribution you can make. the issue is that you are covered by an employer retirement plan. the fact no personal contributions are allowed is irrelevant.

impact of being covered by an employer retirement plan:

if an individual is covered, the contribution is subject to phase-out at the following modified AGI amounts

MFJ $125000