An answer that appeared in the Tax Questions feature on...

Tax questions

April 11, 1997

An answer that appeared in the Tax Questions feature on April 11 contained erroneous information. The deadline for contributions to individual retirement accounts (IRAs) was April 15, regardless of whether or not a taxpayer received an extension.

The Sun regrets the errors.

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q: After working for nine months in 1996, I retired on Oct. 1. I'd like to know if I can make an IRA deduction for 1996.

A: If you had not attained age 70 1/2 by Dec. 31, 1996, you may still contribute as much as $2,000 (assuming that you had at least $2,000 of "earned income") to an IRA for 1996. The contribution must be made by Tuesday, or if you receive an extension of time to file your federal income tax return, by the extended due date (Aug. 15, 1997, or even Oct. 1, 1997). Even if you are permitted to make a contribution to an IRA, separate rules apply to determine whether you can deduct that contribution. If you (or your spouse) are an active participant in any qualified retirement plan during the year, your deduction may be limited or even eliminated entirely. See the worksheet in the IRA Form 1040 instructions to calculate the allowable deduction.

Pub Date: 4/11/97

FOR THE RECORD - CORRECTION

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.