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2012 4.9 Satisfied (479 Votes)
2008 4.2 Satisfied (63 Votes)
2005 4 Satisfied (40 Votes)
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If you are eligible to claim a tax deduction on your IRA contributions, you can report the IRA contributions on Form 1040 Schedule 1 Part II Adjustments to Income. Once you have calculated the amount of tax deduction, you should record this amount on line 32 of Form 1040.
You can deduct your IRA contributions on Form 1040, Schedule 1, Part II Adjustments to Income. However, traditional IRA contributions are not always deductible. Lets talk about what makes a contribution nondeductible and how to report those contributions on your tax return.
SIMPLE IRA contributions are not subject to federal income tax withholding. However, salary reduction contributions are subject to social security, Medicare, and federal unemployment (FUTA) taxes. Matching and nonelective contributions are not subject to these taxes.
Where do I report the contributions I make for myself to my SIMPLE IRA? Report both your salary reduction contributions and employer contributions (non-elective or matching) for yourself on Part II - line 15 of Form 1040 Schedule 1.
The IRS requires that contributions to a SIMPLE IRA be reported on the Form 5498 for the year they are actually deposited to the account, regardless of the year for which theyre made.
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A SIMPLE IRA plan provides small employers with a simplified method to contribute toward their employees and their own retirement savings. Employees may choose to make salary reduction contributions and the employer is required to make either matching or nonelective contributions.
Employer contributions to your SIMPLE IRA may be made in periodic contributions or in a single lump sum, as long as the contributions are deposited before the employers tax return filing deadline (including extensions). May I stop contributing to my SIMPLE IRA? Yes.
The key to remember is that traditional IRA contributions are fully deductible unless you or your spouse have a retirement plan through an employer and you have MAGI over certain deduction thresholds. But even if your IRA contributions are nondeductible, you must still report those contributions on your tax return.
How to Fill Out the Form Provide the Name of the Company. Choose the Eligibility Requirements. Indicate Whether There Are Excludable Employees. Extend the Period for Modifying the Contributions. Prohibit the Employee to Terminate a Salary Reduction Election at any Time. Indicate Contributions Amount.
SIMPLE IRA contributions are not subject to federal income tax withholding. However, salary reduction contributions are subject to social security, Medicare, and federal unemployment (FUTA) taxes. Matching and nonelective contributions are not subject to these taxes. Reporting employer deductions of contributions.

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