Question: Can I take an IRA deduction for the amount I contributed to a 401(k) plan last year?
In general, an amount contributed to a 401(k) account cannot be used as an IRA deduction. Most 401(k) contributions occur on a pre-tax basis, since the contributions are excluded from your federal (and most state and local) taxable income (these contributions are excluded from box 1 taxable wages of your Form W-2 (PDF)).
However, if the 401(k) plan has a deemed IRA feature, contributions to the deemed IRA may be deductible in accordance with the IRA contribution rules. Deemed IRA contributions are included in box 1 and you use the normal IRA contributions rules to determine their deductibility.
- Tax Topic 309, Roth IRA Contributions
- Tax Topic 451, Individual Retirement Arrangements (IRAs)
- Publication 575, Pension and Annuity Income
- Tax Topic 424, 401(k) Plans
- Publication 560, Retirement Plans for Small Business (SEP, Simple, and Qualified Plans)
Category: Individual Retirement Arrangements (IRAs)
Subcategory: Traditional IRA