04/06/2017 Can I Deduct 401k Contributions

Generally Yes….however…..

For Tax Year 2016 there are limitations on 401k contributions and deductions.

The elective deferral limit for 401(k), 403(b), and most 457 plans
Age………………………………….2016
Age 49 and under………….$18,000
Age 50 and older…………..Additional $6,000

Tax Credit for making a contribution depends on your Adjusted Gross Income (AGI):

Credit……………………………….Married Filing Joint…………….Single

50% of Contribution…………..Up to $37,000…………………Up to $18,500
20% of Contribution………….$37,001 to $40,000…………$18,501 to $20,000
10% of Contribution………….$40,001 to $62,000…………$20,001 to $31,000
No Credit Allowed………………Over $62,000……………………Over $31,000

 

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Ben R Shull CPA LLC provides clients with tax, transaction, and advisory services.  The insights and quality services we deliver help lead our clients through the next generation of changes, and accelerate growth while reducing risk. CPA Katy, TX.