Hi I have a question regarding 457 deferred compensation plan. First am I still eligible to make contributions of $2000 to a traditional Roth directly out of my paycheck before filing is due and credit it towards 2006. 2nd, if I am allowed to do that will my employer be required to reissue me a new W2 with a lower taxable income with the IRA contribution on it. What this will do for me is bring my tax liability down $800 from the lower taxable income of $2000 and the $200 saver credit. In essence I get an immediate return of 40% on my $2000 investment. Hope somebody can help me.
2007-02-02 18:21:33 · 3 answers · asked by chuck 2 in Business & Finance ➔ Taxes ➔ United States
What he said ^
And your employer will not issue a W-2c for what you do with your money. You'd receive paperwork from the company with whom you invest your Roth IRA that you'd file with your tax return to verify your deduction.
2007-02-02 18:43:49 · answer #1 · answered by datette 3 · 0⤊ 0⤋
Contributions to an employer sponsored retirement plan must be made during the tax year.
You can make deposits to an individual IRA up to 4/17/07 for the 2006 tax year but not to an employer sponsored plan.
Contributions to an individual IRA are not reflected on your W2.
2007-02-02 19:14:06 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Sorry, you would have needed to do that on or before December 21, 2006 for it to count as part of the 2006 fiscal year.
2007-02-02 18:29:21 · answer #3 · answered by lesaint770 2 · 1⤊ 0⤋