Happy prose
Senior Member
Joined: Dec 20, 2010 12:55:24 GMT -5
Posts: 3,230 
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Post by Happy prose on Feb 15, 2015 16:08:07 GMT -5
What are the rules in order to lower my taxes. Here's the info: I do $13k per year in a 457; my husband just started a 401k, with only about $2k in it. Our total salaries is about $135 k. I don't know how to figure out the adjusted. Do we qualify for a tax write off if he puts $10k in an IRA?
ETA: I also have Roth $, but did not fund 2014 yet. I also contribute to mandatory pension plan.
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phil5185
Junior Associate
Joined: Dec 26, 2010 15:45:49 GMT -5
Posts: 6,412
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Post by phil5185 on Feb 15, 2015 16:22:00 GMT -5
You are allowed to put $18,000/yr into the 401k. That should cut your Fed Tax bill by over $5000/yr. Plus your State tax (if any).
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vonna
Well-Known Member
Joined: Aug 11, 2012 15:58:51 GMT -5
Posts: 1,249
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Post by vonna on Feb 15, 2015 16:28:04 GMT -5
IRA deductions are limited if you have a retirement plan at work (on the w-2, this means if the "retirement plan" box is checked). At $135K you are over that limit, so next year, make sure he increases his 401K contributions!
www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/2014-IRA-Contribution-and-Deduction-Limits-Effect-of-Modified-AGI-on-Deductible-Contributions-If-You-ARE-Covered-by-a-Retirement-Plan-at-Work |
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Happy prose
Senior Member
Joined: Dec 20, 2010 12:55:24 GMT -5
Posts: 3,230
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Post by Happy prose on Feb 15, 2015 17:13:12 GMT -5
Thank you both.
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