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Level 1
June 3, 2019
Question

Is a 401k the same thing as the IRA?

  • June 3, 2019
  • 1 reply
  • 7 views
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1 reply

VolvoGirl
Level 15
June 3, 2019

No it’s not.  A 401K comes out of your paychecks pretax and has already been deducted from the wages on your W2 so you can’t deduct it again.

You contribute to an IRA outside of work and enter the contributions under Deductions & Credits.  You may get a tax deduction for Contributions to Traditional IRA accounts.