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Topic: Taxes and 401K (Read 342 times) |
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chewy
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Anybody know if you can use 401K contibutions as a deduction?
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Yorky
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Re: Taxes and 401K
« Reply #1 on: Apr 9th, 2007, 7:41am » |
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on Apr 9th, 2007, 6:58am, chewy wrote:| Anybody know if you can use 401K contibutions as a deduction? |
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not off djs paypal 
appology.
chewy,dj.....i do not understand your tax etc.....
it was my feeble attempt at a bit of humour 
i also dont understand paypal?
i know "i have posted a lot lately......but 4 months prior...i was ere every day.....but did not post.
8 days little sleep, i am going mad...i have sat at this computer, all that time trying to learn more ?
as i am a builder (last computer i had was a ...sinclair spectrum)
i do not try to offend, and if i do i will appolagie.
i am just trying to put humour to clustervill (humour is keeping me sane)
i sent an im to you.....but you have blocked me.
i am sorry.
tony.
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| « Last Edit: Apr 9th, 2007, 6:38pm by Yorky » |
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jimmers
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Re: Taxes and 401K
« Reply #2 on: Apr 9th, 2007, 9:11am » |
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I don't think you can.
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purpleydog
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Re: Taxes and 401K
« Reply #3 on: Apr 9th, 2007, 9:23am » |
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No, you can't.
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TonyG1
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No. IRAs -- yes.
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BMoneeTheMoneeMan
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Re: Taxes and 401K
« Reply #5 on: Apr 9th, 2007, 10:26am » |
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A 401K Contribution IS a deduction. Its taken from the gross pay.
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chewy
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Its deducted from my gross pay but I guess the contribution cant be used as a write off?
Is it only a Roth IRA that can be used as an end of year write off?
I'm getting killed by the IRS and need to find ways to redice my yearly taxable income.
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fubar
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Re: Taxes and 401K
« Reply #7 on: Apr 9th, 2007, 11:10am » |
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no, it cannot be a write-off because your 401K contributions are still yours. You can't write something off if you still have it.
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BMoneeTheMoneeMan
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Re: Taxes and 401K
« Reply #8 on: Apr 9th, 2007, 11:16am » |
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The amount you put in your 401k is tax deductable, however, its already been deducted for you.
For example, if you earn $1,000, but choose to deduct $100 from your gross pay for a 401k plan, your taxable wages are then only $900. You have "written off" your contribution and it is not taxable.
Look and see if there is a difference on your W-2s between your gross total wages and the medicare wages. The difference between these 2 is the amount you deducted on a pre-tax basis.
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"Fool me once, shame on, shame on you. Fool - can't get fooled again"
Think of how stupid the average person is, and then realize half the population is stupider than that.
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chewy
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Ok I got ya. Thanks.
Is thr Roth IRA the only one I can use as a write off to reduce my end of year taxable income?
I might as well sign the IRS up as the beneficiary to my life insurance!
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BMoneeTheMoneeMan
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Re: Taxes and 401K
« Reply #10 on: Apr 9th, 2007, 11:31am » |
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The traditional IRA is the tax deductable one. The difference between a traditional and a roth is that the traditional IRA is a deduction now and taxable later, a roth is taxable now but not taxable later.......IE when you start to withdraw from it, it is tax free.
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"Fool me once, shame on, shame on you. Fool - can't get fooled again"
Think of how stupid the average person is, and then realize half the population is stupider than that.
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alienspacebabe
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Re: Taxes and 401K
« Reply #11 on: Apr 9th, 2007, 11:38am » |
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Roth IRA is not deductible.
Traditional IRA is deductible (within income limits).
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Jackie
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Re: Taxes and 401K
« Reply #12 on: Apr 9th, 2007, 4:12pm » |
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Hey Chew....
Talk to your CPA...it's not to late to make an IRA contribution and deduct it on this years taxes....But you have to have the contribution made by April 15th (or whenever the deadline is this year).
I'm thinking you can still make a $4.000 to $5,000 contribution even though you have a 401K....
I'm no accountant though... 
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artonio7
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Re: Taxes and 401K
« Reply #13 on: Apr 9th, 2007, 4:18pm » |
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on Apr 9th, 2007, 4:12pm, Jackie wrote:Hey Chew....
Talk to your CPA...it's not to late to make an IRA contribution and deduct it on this years taxes....But you have to have the contribution made by April 15th (or whenever the deadline is this year).
I'm thinking you can still make a $4.000 to $5,000 contribution even though you have a 401K....
I'm no accountant though... |
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Time for a shameless plug for O.U.C.H. a non-profit organization always happy to receive a contribution.
with warm regards,
Tony
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fubar
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Re: Taxes and 401K
« Reply #14 on: Apr 9th, 2007, 4:39pm » |
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Here are the 3 main differences in traditional IRA versus Roth IRA
Contributions
Traditional IRA: Regular contributions may be deductible
Roth IRA: No deduction
Growth of Earnings
Traditional IRA: Tax deferred
Roth IRA: Tax exempt
Taxability of Withdrawals
Traditional IRA: Included in taxable income
Roth IRA: Tax-free for qualified distributions
What it means is this...
Roth IRA contributions have no impact on your taxable income. So, you are putting money in that has already been taxed. When you take it out, you don't get taxed on it again unless you take it out before retirement (then you generally pay a penalty). The upside is this... if the money grows while it is in the Roth IRA, that income (the growth) is tax-free. If your Roth IRA investment does really well, it's all tax-free assuming you don't take it out until you're old.
Regular IRA contributions do reduce your taxable income, so your investment is pre-tax. You get taxed when you take it out, generally when you're in a lower tax bracket. All of the distributions from a regular IRA are taxed (even the growth income) when you pull them out. You have to pay penalties if you pull it out early.
-Fu
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BarbaraD
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Re: Taxes and 401K
« Reply #15 on: Apr 9th, 2007, 4:59pm » |
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Don,
Form 8880 -- Depending on your income.. Try that one - you might be eligible to take a deduction on it. It's a little known form that most people (including a lot of CPA's don't know about). It came into being a couple of years ago.
And don't forget the telephone credit -- $30 is $30.
And if you've replaced any appliances or done any remodeling on your home don't forget the energy savings credit. You can rake up about $500 without breaking a sweat.
That's about all I can think of right now without knowing where you are on your taxes. If you need any help PM me.
Hugs BD
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Jackie
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Re: Taxes and 401K
« Reply #16 on: Apr 9th, 2007, 5:13pm » |
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OK.....question....
Does installing a new wood burner insert qualify for the 'energy savings credit'....
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chewy
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You guys are the best!
What it boils down to is I need to open a traditional IRA, I may still have time to contribute to it for this tax year, and I use the 8880 form to document the deduction.
Why did I not seek a career in Financial Managment? Simple. Because all of my clients, as well as myself, would end up in Federal prison.
I suck. 
Love
Chewy
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Yorky
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Re: Taxes and 401K
« Reply #19 on: Apr 9th, 2007, 6:40pm » |
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on Apr 9th, 2007, 7:41am, Yorky wrote:
not off djs paypal
appology.
chewy,dj.....i do not understand your tax etc.....
it was my feeble attempt at a bit of humour
i also dont understand paypal?
i know "i have posted a lot lately......but 4 months prior...i was ere every day.....but did not post.
8 days little sleep, i am going mad...i have sat at this computer, all that time trying to learn more ?
as i am a builder (last computer i had was a ...sinclair spectrum)
i do not try to offend, and if i do i will appolagie.
i am just trying to put humour to clustervill (humour is keeping me sane)
i sent an im to you.....but you have blocked me.
i am sorry.
tony.
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i sent an im to you.....but you have blocked me
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| « Last Edit: Apr 9th, 2007, 6:41pm by Yorky » |
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today is a gift.....thats why it is called the
present.
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chewy
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I dont have you blocked York.
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Yorky
CH.com Alumnus
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learn to meditate (or just sit & do nowt)
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Re: Taxes and 401K
« Reply #21 on: Apr 9th, 2007, 7:30pm » |
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on Apr 9th, 2007, 7:19pm, chewy wrote:| I dont have you blocked York. |
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no you do not (sorry)
dont know why it was saying that?
sorry i will delete the other post
CHEWYS SOUND.........YORKYS THICK
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| « Last Edit: Apr 9th, 2007, 7:32pm by Yorky » |
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today is a gift.....thats why it is called the
present.
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chewy
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Quote:| CHEWYS SOUND.........YORKYS THICK |
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LMAO!
If I'm the standard for "sound" then we are all in deep shit!
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