For example, I have an old 403b account with Vanguard and currently employed by a company that does not have a retirement program. I still would like to contribute to the account but with no tax advantage, I am wondering if the contributions are deductable off my federal yearly taxes. Thanks!
2007-08-01 05:53:47 · 3 answers · asked by widespread 1 1 in Business & Finance ➔ Taxes ➔ United States
only your employer can submit your contributions to a 403b plan.
if you want to contribute to a retirement plan there are traditional IRAs that you can contribute to and should have no problem deducting since you are not covered at work.
You can also convert the old 403b to a traditional IRA without any penalty and then contribute more to it that way which often will earn more than opening a 2nd account would.
2007-08-01 06:15:44 · answer #1 · answered by goldenboyblue 3 · 1⤊ 0⤋
If the taxes are not take out of pretax income, then they are not deductable on yearly taxes. You shouldn't put posttax income into an account that started as a pretax income account. That screws up taxes considerations. You could put your money into an IRA and have the 403b converted into a Rollover IRA and then placed in with your IRA contributions. If you put the money into a regular IRA, it is tax deductable.
2007-08-01 12:58:27 · answer #2 · answered by Andrea B 3 · 1⤊ 0⤋
If you no longer work for the sponsoring firm you can no longer make contributions to the plan. If you wish to make contributions you'll have to roll it over into an IRA.
2007-08-01 15:22:15 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋