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Alternatives for 401K contribution for tax deduction

Last year 2011, I contributed to 401(K) (roll over from employer) hoping I can claim deduction. To my surprise, TurboTax calculation gave zero deduction due to AGI (married filing jointly) exceeding $110,000 somekinda restriction . If I convert to traditional IRA, can I claim my contribution as deduction in 2012 filing?  Whats the catch wit regular IRA. I plan to take out before 59.5. please advice whats best.
    As long as Form 1040 line 16a shows the total $$ distributed on the rollover (box 1 of the 1099-R), and 16b is just the $$ you did Not rollover...or zero if all of it was rolled over, then that part of the rollover is just fine.
    For the $1500 contribution, since you were covered by an employer plan for part of 2011 (covered by the 401k before you left that company), Based on your input to the software, the software is saying that you were above the income limits in 2011 for making a deducttable contribution, and the $1500 is considered a non-deductible contribution.  And since you didn't have any deduction on line 32 of the form 1040...that's just fine. Nothing to chang or correct there.

    Can you make the $1500 deductible for 2011?
    ...No.  Not if you MFJ income (MAGI) is above 110,000 for 2011.

    The $5000 limit is for the total contrIbution (per person) of deductible and non-deductible portions....including any ROTH IRA contributions.  A $5000 non-deductible contribution could be made if your income is too is just the abiilty to deduct any of the contribution is phased out as your income increases.

    Can the 1500 be re-characterized as a 2012 this point, I don't think so.  You need to talk to the IRA administrator to see if they need to note that the $1500 was characterized a deductible or non-deductible contribution in their records.  Some administrators keep good track, others leave entirely up to the client (you).

    Can you make a contribution for 2012?  A new deductible contribution could now be done for 2012.  IF you and your wife have JOB income in 2012, and you MAGI does not exceed the limits in 2012, then yes.....but if your MFJ income is close to the limits, delay it until you know for sure. And read closely thru all fo the IRS details in my link in the 10:25 AM post above.  

    (You do have to have family job income in 2012 ion order to contribute though...either you or your wife must have job income, or self emloyment income greater tahtn your contribution amount).
      Not exacly clear what you did.
      You rolled over a 401k from one employer's plan to another employer's plan?

      If so, I think you just entered it wrong.  (A rollover is not enterd as a "contribution")

      The only way that AGI resitriction comes up is if you entered it as a contribution on the Deductions & Credits page....don't do that...go back and take that contribution out.

      The only place the rollover into the new plan is entered is on the "Retirement Plans and Social Security" section on the "Wages & Income" page.  You should have received a 1099-R form from the old plan, for the $$ you took out.
      When you enter your 1099-R form, the followup questions ask about whether you rolled over the $$.  If entered correctly, the total distribution will show up on line 16a of your form 1040, and a blank or zero on line 16b of the form 1040.  (Click on the Federal Refund $$ box in the upper right.  When the Fed summary shows up, look for the "Preview my 1040" link and click on that)
      • Thank you SteamTrain. Sorry I forgot to mention, in addition to rollover from employer, I individually contributed to the rolledover plan.
      • I thought for the year 2011, people can contribute up to $16,500 and claim deduction. I contributed $1500 to the rolled over 401K (non employer different vendor) and did not get any deduction to taxable income. Whats the best way to enter and claim the deduction for 2012. I wanted to invest and contribute for 2012 but skeptical if i cannot claim as deduction. Based on this answer, can I claim as deduction from IRA (hope there is no AGI limitation?). Thanks
      Wait....what's this "I contributed $1500 to the rolled over 401K (non employer different vendor)"


      1)  Did you roll all the $$ plus 1500 into a 401k or an IRA???....These are entirely different beasts.

      You need to talk to the people you rolled the $$ into...what type of account did it go into?

      2)  Did the fiormer employer give you check for the full Account $$ or did they withhold some $$ for potential taxes?
      3) Did the former employer not give you a check made  to you...or did the do a direct transfer to the new account vendor.
      4) Or a check with the new vendor's name on it, but the full value of the former account $$ on it?
      • Dont get confused and pls understand.

        1. X dollars rolled over from employer 401K to non-employer 401K due to job loss.
        2. Contributed $1500 to new 401(K) plan after roll-over.

        Also I am awaiting answer for above question.
      • I'm thinking the new plan is NOT a 401k.
        what's shown on the new plan statement?

        (I guess it could be an individual, SOLO or Self-Directed 401k for self employed business people).
        "The Individual 401K Plan can be adopted by a sole proprietorship, LLC, Partnership, or Corporation. "

        have you started your own company now?
      • Irrespective of the Plan Type/Name the $$ went into, you need to treat the Rollover and the $1500 as two seperate items.

        The Rollover is handled with the 1099-R entry on the wages & Income page.  Most or all of thsoe $$ are not taxed if entered correctly.  You do NOT get a tax deduction for a is NOT a contribution, it is effectively just a transfer of $$ from one retirement account to another.....but you don't get taxed on most or all the distribution either.

        The $1500 might, or might not be considered a contribution,  (probably is)
        ...depends on whether taxes were withheld when $$ were distributed from the former 401k account..and whether the $1500 went in at the same time as the rollover

        The $16,500 for 2011 limit is for NEW contributions to an employer sposored 401k plan, usually thru salary witholding.

        A Rollover can easily be in the hundreds-of-thosuands with no taxes due on a ROLLOVER....because it is NOT a new contribution....and is Not entered into the tax program as a "contribution".
        IRA "contribution" limits are much lower that $16,500.  (Up-To 5000 or 6000 depending on your age and income)
        There are no 401k-to-IRA or IRA-to_IRa, or 401k-to-401k rollover limits.,-Employee/Retirement-Topics---IRA-Contribution-Limits
      • its Rollover IRA and I contributed $1500 later. I rechecked my 2011 return and observed IRA Deduction (line 32) is zero. Form 8606 Nondeductible IRAs shows $1500. Is this wrong? is there a way to reprocess and claim $1500 contribution as deduction?
        Is that $5000 contribution limit for deduction towards IRA no matter what the AGI is?