• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Should you extend your retirement date?

by on
in Small Business Tax

Q. I plan on retiring at the end of the year. But if I work one month in 2010, will I qualify for IRA deductions? T.H., Eugene, Ore.

It depends. If you (or your spouse, if you’re married) is an “active participant” in a company retirement plan in 2010, IRA contributions for that year are nondeductible or only partially deductible if your AGI exceeds a specific dollar threshold.

(Figures for 2010 have not been announced yet, but the phaseout for 2009 begins at $166,000 of AGI for joint filers and $89,000 for single filers for 2009.) Otherwise, you will be able to deduct an IRA contribution equal to the lesser of 100% of your earned income for the year or an annual threshold ($5,000 or $6,000 if you will be age 50 or older as of Dec. 31, 2010; these amounts may be adjusted for inflation).

Assuming you’re age 50 or older, you can make an extra “catch-up contribution” to an IRA ($1,000 for 2009). The same contribution limits apply to Roth IRAs.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/27098/should-you-extend-your-retirement-date "

Related Articles...

    No matches

Leave a Comment