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bigbaloney
New Member

I work for a school district in Pennsylvania. I have a retirement plan. I owe taxes this year. Can I open up a 401K now and reduce my tax liability?

 
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SteamTrain
Level 15

I work for a school district in Pennsylvania. I have a retirement plan. I owe taxes this year. Can I open up a 401K now and reduce my tax liability?

No..not a 401k

But potentially a deductible IRA  in the next couple days.

But with a retirement plan at work, your ability to contribute to an IRA AND deduct it is limited by your  income:

https://www.irs.gov/retirement-plans/plan-participant-employee/2016-ira-contribution-and-deduction-l...

_______________________________

many places may require they have a check..in their hands by Monday, and you would need to tell them that it was for 2016...you waited far too long to deal with this......and hasty actions at the last minute can led to tax grief.

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

View solution in original post

1 Reply
SteamTrain
Level 15

I work for a school district in Pennsylvania. I have a retirement plan. I owe taxes this year. Can I open up a 401K now and reduce my tax liability?

No..not a 401k

But potentially a deductible IRA  in the next couple days.

But with a retirement plan at work, your ability to contribute to an IRA AND deduct it is limited by your  income:

https://www.irs.gov/retirement-plans/plan-participant-employee/2016-ira-contribution-and-deduction-l...

_______________________________

many places may require they have a check..in their hands by Monday, and you would need to tell them that it was for 2016...you waited far too long to deal with this......and hasty actions at the last minute can led to tax grief.

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

View solution in original post

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