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JKCPA
JKCPA, CPA
Category: Tax
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Experience:  CPA with tax experience.
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I have a defined benefits pension plan which only my employer

Resolved Question:

I have a defined benefits pension plan which only my employer contributes to. Can I still have a traditional IRA and deduct my IRA contributions on my income tax and is there an income requirement for being able to do so?
Submitted: 6 years ago.
Category: Tax
Expert:  JKCPA replied 6 years ago.

HelloCustomer

 

Thanks for your question.

 

Yes, if you have a defined benefit plan, you are considered to be covered under a retirement plan at work. Your W-2 should have the retirement plan box checked.

 

The contribution limit for traditional IRA is $5,000 in 2009. If you were age 50 or older by the end of 2009, the limit is $6,000 including the $1,000 catch up contribution.

 

Since you are covered by a retirement plan at work, for 2009, if your modified adjusted gross income (MAGI) is over the following amounts, then your tax-deductible contribution to a traditional IRA is subject to a phased-out limit:

  • Your filing status is married filing jointly and your MAGI is more than $89,000 but less than $109,000.
  • Your filing status is single, head of household and your MAGI is more than $55,000 but less than $66,000.
  • Your filing status is married filing separate returns your deductible phase out starts at under $10,000.

For more information, please see IRS 2009 Publication 590

 

Hope this helps,

Best regards,

 

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