Golden Mean
Recycles dryer sheets
- Joined
- Feb 20, 2009
- Messages
- 198
I work for a small employer. Until now we have not had a 401k. Each year I put the max allowable into a TIRA which drops my AGI by that amount and my taxes are reduced.
My employer is now offering a 401k. First payroll deduction will be end of Oct. if the stars align properly. My understanding is you cannot deduct IRA contribs if you have an employer "defined plan" (a 401k).
My question is: Is there any provision in the IRA/401k rules that deal with a 401k that's started near end of the year? My issue is, I'm not sure I can deduct enough from my paycheck in the 8 weeks left in the year to match what I was putting in an IRA.
GM
My employer is now offering a 401k. First payroll deduction will be end of Oct. if the stars align properly. My understanding is you cannot deduct IRA contribs if you have an employer "defined plan" (a 401k).
My question is: Is there any provision in the IRA/401k rules that deal with a 401k that's started near end of the year? My issue is, I'm not sure I can deduct enough from my paycheck in the 8 weeks left in the year to match what I was putting in an IRA.
GM