Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-16-2013, 06:39 AM
Junior Member
 
Join Date: Feb 2013
Posts: 1
After tax contributions

Ignoring the limits, am I allowed to take a deduction for the cash I contributed that was already taxed? Husband was participating in a 401K during 2012 but passed away. I took $5000 out of pocket cash and contributed it to my traditional IRA. Should I file form 8606 with the amount as nondeductible for my records for when I take a distribution then allocate the taxable and nontaxable amount? Or can a deduction be made.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-16-2013, 07:47 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“Ignoring the limits, am I allowed to take a deduction for the cash I contributed that was already taxed?“ Husband was participating in a 401K during 2012 but passed away. I took $5000 out of pocket cash and contributed it to my traditional IRA. “========> No. You are not allowed to take a dedcuition for the after tax cash contributed to the IRA.

“Should I file form 8606 with the amount as nondeductible for my records for when I take a distribution then allocate the taxable and nontaxable amount? Or can a deduction be made.”=======>Since you made non-deductible IRA contributions , you need to file Form 8606. Form 8606 needs to be normally submitted with a timely filed Form 1040. You should file Form 8606 to report your basis in a non-deductible IRA. File one Form 8606 for each year that you make non-deductible contributions. This will establish your basis in the IRA. You would then be eligible either to convert your non-deductible IRA into Roth IRA, or you could begin taking distributions from the non-deductible IRA. Unless you submit a Form 8606 you may be taxed on your 2012 contributions again when you withdraw the contributions



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
501(d) Social Security contributions JimF Social Security 1 05-14-2011 12:32 PM
HELP!! Misdirected IRA Contributions tjbsilv IRA/Sep 0 05-12-2010 10:01 AM
C Corp Carryover of Contributions theresafoster C-Corporation 0 02-15-2010 02:43 PM
Does NJ tax SEP-IRA contributions? CowboyMC New Jersey 0 01-28-2010 12:57 PM
Does NJ tax SEP-IRA contributions? CowboyMC IRA/Sep 0 01-28-2010 12:43 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.