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Just wondering if you already answered my question, or if this chat will address it?
If your employer allows you to contribute the max to your 401K ($17,500) from Oct -Dec then there should be no problem there
However, I am not sure that your calculation is entirely correct
As you know, unemployment is taxable
I understand, I just put numbers out there for simplicity.
You didn't mention if you actually received any unemployment during the year, but I wanted to be sure that we were on the same page there
ok......that's makes sense then
I just wanted to be sure that we covered that subject
Also, if I contribute more than $5,500 to my 401K, then I'm ineligible to contribute to an IRA also. Is that right? Or is it dependent solely on income? The IRS website states it is based on income levels, but I'm not sure.
please give me just a second while I find that for you
Starting in 2013, eligible people under age 50 can contribute $17,500 to 401k plans and $5,500 to IRA plans. \
The above information came from this web site:
For 2012 (and I'm assuming 2013 also), it appears that I can do this since my income is below the threshhold in this table from the IRS website. Think it confirms what you stated above:
If you are covered by a retirement plan at work, use this table to determine if your modified AGIaffects the amount of your deduction.
If Your Filing Status Is...
$58,000 or less
a full deduction up to the amount of your contribution limit.
more than $58,000 but less than $68,000
a partial deduction.
$68,000 or more
$92,000 or less
more than $92,000 but less than $112,000
a partial deduction.
$112,000 or more
less than $10,000
a partial deduction .
$10,000 or more
My AGI will be less than $58,000
yes, you are absolutely correct
Thanks. Just wanted to confirm.
Thank you for allowing me to help you today
Also, are IRA / 401K contributions exempt from state taxes also. That's the last question.
that varies from state to state.......and it appears that you live in CA, so let me check that out for you
I'm sorry to take some extra time here
but I live in MI, so I need to look up CA
Do you mind waiting?
CA recoginizes deferred comp
and does not require any type of adjustment for your deferred comp plan
Anne, thanks for the answer.
We can end this chat. You've been helpful.