Adding $ to a Trad IRA, refund doesn't increase. Why? IE. Entering between $1500 and $5250 increases refund by $342. Should $1500 go Trad IRA and $3750 into a Roth IRA?

Forum|Forum|1 year ago
February 27, 2025
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Income of $80,000 from inherited 401k, $5259 income from wages, $13000 from earnings into a 401k. Program is generating form 8606 which hasn't happened in prior years. Is the $80000 too much as usually only 60-65000 is taken out of the inherited 401k.

DanaB27

Please note, the deduction of the traditional IRA may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. If you cannot deduct the full amount because of your income then you will have a basis recorded on Form 8606. Please see IRA deduction limits for details.

Roth IRA contribution are also limited based on your filing status and Modified Adjusted Gross income (MAGI). Please see Amount of Roth IRA Contributions You Can Make for 2024 for details.

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