 | Traditional IRA: How Much Can You Contribute and Deduct in 2004?
Worksheet F-B
Use this worksheet if you have less than $3,000 in taxable
compensation for the year and file your federal income tax
return as married filing jointly.
1. Enter your taxable compensation for
the year.
- Taxable compensation includes wages, salaries,
commissions, self-employment income, and taxable
alimony or separate maintenance.
- Do not include earnings and profits from property
(rent, interest, dividends).
- Do not include your spouse's taxable
compensation.
- Do not reduce your taxable compensation by any
losses from self-employment.
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$_______ |
| 2. Enter your spouse's
taxable compensation for the year. |
$_______
|
| 3. Compare the amount on line (1) with
the amount on line (2). If line (2) is greater than line
(1), enter the amount from line (2). Otherwise, enter
zero. |
$_______
|
4. Enter the amount your spouse
contributed to his or her own traditional and Roth IRAs
for the year.
- This amount cannot be more than $3,000 ($3,500 if
your spouse is age 50 or older). If it is, your spouse
has made excess contributions.
- Do not include amounts that your spouse rolled over
into an IRA from another IRA or retirement plan, or
amounts that your spouse converted from a traditional
IRA to a Roth IRA.
|
$_______ |
5. Subtract line (4) from line (3).
- If the result is less than zero, enter zero.
|
$_______
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| 6. Add lines (1) and (5). |
$_______
|
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7. Enter the lesser of line (6) or $3,000.
- This is the most that you can contribute to your
traditional IRA for the year if you are under age
50.
- If you are age 50 or older, you may add an
additional $500 "catch-up" contribution to your
allowable contribution amount.
|
$_______
|
The amount above represents the maximum contribution that
you can make to your traditional IRA for the year. Some, all,
or none of this contribution amount may be tax deductible on
your federal income tax return. To determine what portion of
your contribution is tax deductible (if any), go to
Step Two: How Much Can You
Deduct?
Caution:
The amount above represents the total amount that you can
contribute to all of your IRAs (traditional and Roth) for the
year. If your total contribution to all of your IRAs exceeds
this amount, you will be subject to a federal excess
contribution penalty.
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