IRA Contributions

Z06 · ‎March 7, 2023

I receive a pension (Federal Gov.) I work part time and contribute to a company sponsored IRA. How do I separate pension income from part time company income for the purpose of a deduction for my IRA contributions? I am using Home and Business.

JulieS · ‎March 7, 2023

No, you can't separate the income on your return to calculate your IRA deduction.

You say, "I work part time and contribute to a company sponsored IRA." I am assuming by that you mean that your employer is offering a 401(K) IRA, a 401(K) Roth, or similar, and your contributions are deducted from your pay.

If that is the case, you can't deduct the IRA contributions on your tax return because they are already deducted from your pay (except Roth, which is not deductible at all) and are reported on your W-2 form in box 12.

If this is not what you mean, please reply back with more details and we will help you further.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Opus 17 · ‎March 7, 2023

An IRA is an individual retirement arrangement. Almost all company plans are offered under different sections of the tax code (401k, 403b, 457a, and others). They are not IRAs even though they have a similar purpose. Contributions to a company plan are already subtracted from your taxable income and you never list them separately as any kind of IRA contribution.