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IRA Deduction

 

Can I deduct IRA contributions?

Generally, you can deduct contributions you make to a traditional individual retirement agreement or IRA as an adjustment to income on line 32 of Form 1040.

IRA, not 401k

Do not confuse a traditional IRA that you set up with an employer retirement plan such as a 401k plan to which you contribute part of your salary.

 

Can I deduct 401k contributions like IRA deduction?

You cannot deduct your contributions to an employer plan as an adjustment to income. Also, your contributions to a Roth IRA are never deducted as an adjustment to in come.

 

Deduction of IRA contributions

The IRA deduction adjustment allows you to deduct your contributions to a traditional IRA from  your total income. You do not pay taxes on your deductible contributions to a traditional IRA until you with draw them from the IRA.

You can make contributions for the current tax year up to the due date of your tax return, not including extensions.


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