Did you know? subject: IRA tax deductions
While sitting in my financial planning class this weekend I learned something that I never knew before. Did you know that if you are covered by an employer sponsored retirement plan (i.e. 401K) then your contribution to a traditional IRA may not be tax deductible?
In other words, let’s say that you contribute 5-10% of your wages towards a 401K program. In addition, you also contribute money to a traditional IRA. Unless you max out your employer sponsored plan your contribution to your IRA may be, may not be, or may be partially tax deductible depending on your Adjusted Gross Income for that year.
I always thought no matter what you were allowed to deduct you entire traditional IRA contribution. Here is a link to publication 590 which deals with the subject on the IRS website.