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Mark D
Mark D, Enrolled Agent
Category: Tax
Satisfied Customers: 1304
Experience:  MBA, EA, Specializing in Business and Individual Tax Returns and Issues
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Because of paperwork error, I did not fund my existing 401K ...

Resolved Question:

Because of paperwork error, I did not fund my existing 401K with pay roll deductions in 2007. Can I: make a lump sum distribution to my 401K before April 15th? Or, fund an IRA for myself? Or, can my self-employed husband fund an IRA for me?
Submitted: 9 years ago.
Category: Tax
Expert:  Mark D replied 9 years ago.

It would be too late to fund the 401K, however you would still be able to fund an IRA under April 15, 2008. The deductibility of an IRA contribution may be limited since you were covered by a retirement plan. Also, the limit for 2007 would be $4000 ($5000 if age 50 or over), whereas your potential 401K contribution may have been substantially higher. Since your husband is self employed, you may want to consider putting extra funding into his SEP (or other vehicle) if the limits are not already reached. This would give you the tax break you are looking for, but would be under his name. please let me know if you have any questions.


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