cancel
Showing results for 
Search instead for 
Did you mean: 
Level 6

Can I deduct my Roth Ira contributions and my 401k contributions.

I have a employer sponsored 401k with both a 401k and a Roth IRA set up that I contribute to both.  Outside of work I have a Roth Ira as well.  Can I deduct any of this?
2 Replies
Highlighted
Level 1

Can I deduct my Roth Ira contributions and my 401k contributions.

Roth IRAs contributions or distributions usually do not impact your return. 

You may qualify for the IRA deduction if you made a regular contribution (added money that was not a rollover contribution) to a traditional IRA. A rollover is when you transfer funds from one IRA to another, or from a tax-deferred plan, such as a 401(k) plan, to an IRA.

Eligibility requirements:

  • You're under age 70 1/2 at the end of the year.
  • You (or your spouse, if filing a joint return) have earned income, such as salary or self-employment earnings.
  • You can deduct all of your contribution if you (and your spouse, if filing a joint return) are not covered by a retirement plan at work.
  • If you (or your spouse, if filing a joint return) are covered by a retirement plan at work, you might be able to deduct all of your contribution, only part of it, or none of it, depending on your modified adjusted gross income (MAGI) and your filing status.
Level 20

Can I deduct my Roth Ira contributions and my 401k contributions.

The amount reported with code AA in box 12 of your W-2 is not a Roth IRA contribution.  It is a contribution to a Designated Roth Account in your 401(k).

None of this is deductible on your tax return.  Your employer has already excluded your elective deferrals to the traditional 401(k) account, shown with code D in box 12 of your W-2, from the amount reported in box 1 of your W-2 as taxable income.  Contributions to the Roth account in your 401(k) are not excludible from income.  Contributions to a Roth IRA are not deductible.

Depending on your AGI, you might qualify for a Retirement Savings Contributions Credit based on these contributions and other factors.  Under Deductions & Credits, be sure to enter only your personal Roth IRA contribution.