So happy about the 401K until...
February 15, 2008 1:28 PM Subscribe
Did my 401K just blow my IRA deduction out of the water?
This question is stumping my HR and my financial adviser. I was a consultant for 2007 until December. I was diligently squirreling away my monthy contribution of $333 so I would be able to deduct the max $4000 at the end of the year. However, I started a new job as a FTE and my paycheck for December enrolled me in the company 401K. When I fired up my TurboTax it said that I was unable to deduct the IRA because I was in a 401K for the year and my MAGI(?) had exceeded the allowance for that deduction. Do I have any recourse? Or do I just leave the money in the IRA as undeducted?