Deductibility of XXX Contributions Sample Clauses

Deductibility of XXX Contributions. Deductible Traditional XXX Contributions The amount contributed by an individual to a Traditional XXX may be deductible from gross income in that tax year for federal income tax purposes. If both you and your spouse (as applicable) are not an active participant in certain employer-sponsored plans (such as, a qualified pension, profit sharing, 401(k) or stock bonus plan, a SEP plan, a SIMPLE XXX plan or other similar plans established by the federal government, a state, or a political subdivision), your entire XXX contribution may be deductible. However, the deductibility of contributions is phased out for individuals who are active participants in certain employer-sponsored retirement plans who have a MAGI above specified levels. The allowable deduction is reduced proportionately (rounded to $10 increments) for taxpayers with MAGI within a phase-out range. The phase-out range is as follows, with subsequent annual adjustments by the IRS: Tax Year MAGI (Single) MAGI (Married Filing Jointly) 2022 $68,000 – $78,000 $109,000 - $129,000 The MAGI phase-out range for an individual that is not an active participant, but is married to an active participant, is $204,000– $214,000 for 2022 and may be subject to cost-of-living increases for subsequent tax years. A special tax rule provides that if your MAGI is within the phase-out range, your Traditional XXX deduction limit is never less than $200. Thus, if your resulting deduction is between $0 and $200, you may round up to $200. If you are an active participant, are married and you file a separate income tax return, your MAGI phase-out range is generally $0– $10,000. However, if you lived apart for the entire tax year, you are treated as a single filer. If you do not know whether your employer maintains one of these plans or whether you are an active participant in a plan, check with your employer or your tax advisor. Also, the IRS Form W-2, Wage and Tax Statement that you receive at the end of the year from your employer will indicate whether you are an active participant. Nondeductible Traditional XXX Contributions Even though your contributions may not be deductible, you may nonetheless make nondeductible contributions to your Traditional XXX to the extent that deductible contributions are not allowed. The sum of your deductible and nondeductible XXX contributions cannot exceed the contribution limit set forth in section 2(a) above. You may elect to treat deductible XXX contributions as nondeductible contributions...
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Deductibility of XXX Contributions 
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Related to Deductibility of XXX Contributions

  • Catch-Up Contributions In the case of a Traditional IRA Owner who is age 50 or older by the close of the taxable year, the annual cash contribution limit is increased by $1,000 for any taxable year beginning in 2006 and years thereafter.

  • Nondeductible Contributions You may make nondeductible contributions to your Traditional IRA to the extent that deductible contributions are not allowed. The sum of your deductible and nondeductible IRA contributions cannot exceed your contribution limit (the lesser of the allowable contribution limit described previously, or 100 percent of Compensation). You may elect to treat deductible Traditional IRA contributions as nondeductible contributions. If you make nondeductible contributions for a particular tax year, you must report the amount of the nondeductible contribution along with your income tax return using IRS Form 8606. Failure to file IRS Form 8606 will result in a $50 per failure penalty. If you overstate the amount of designated nondeductible contributions for any taxable year, you are subject to a $100 penalty unless reasonable cause for the overstatement can be shown.

  • Matching Contributions The Employer will make matching contributions in accordance with the formula(s) elected in Part II of this Adoption Agreement Section 3.01.

  • How Are Contributions to a Xxxx XXX Reported for Federal Tax Purposes You must file Form 5329 with the IRS to report and remit any penalties or excise taxes. In addition, certain contribution and distribution information must be reported to the IRS on Form 8606 (as an attachment to your federal income tax return.)

  • Tax Credit for Contributions You may be eligible to receive a tax credit for your IRA contributions. This credit will be allowed in addition to any tax deduction that may apply, and may not exceed $1,000 in a given year. You may be eligible for this tax credit if you are • age 18 or older as of the close of the taxable year, • not a dependent of another taxpayer, and • not a full-time student. The credit is based upon your income (see chart below), and will range from 0 to 50 percent of eligible contributions. In order to determine the amount of your contributions, add all of the contributions made to your IRA and reduce these contributions by any distributions that you have taken during the testing period. The testing period begins two years prior to the year for which the credit is sought and ends on the tax return due date (including extensions) for the year for which the credit is sought. In order to determine your tax credit, multiply the applicable percentage from the chart below by the amount of your contributions that do not exceed $2,000. 2019 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–38,500 $1–28,875 $1–19,250 50 $38,501–41,500 $28,876–31,125 $19,251–20,750 20 $41,501–64,000 $31,126–48,000 $20,751–32,000 10 Over $64,000 Over $48,000 Over $32,000 0 2020 Adjusted Gross Income* Applicable Percentage Joint Return Head of a Household All Other Cases $1–39,000 $1–29,250 $1–19,500 50 $39,001–42,500 $29,251–31,875 $19,501–21,250 20 $42,501–65,000 $31,876–48,750 $21,251–32,500 10 Over $65,000 Over $48,750 Over $32,500 0 *Adjusted gross income (AGI) includes foreign earned income and income from Guam, America Samoa, North Mariana Islands, and Puerto Rico. AGI limits are subject to cost-of-living adjustments each year.

  • Payment of Contributions The College and eligible academic staff members shall each contribute one-half of the contributions to the Academic and Administrative Pension Plan.

  • Saver’s Credit for IRA Contributions A credit of up to $1,000, or up to $2,000 if married filing jointly, may be available to certain taxpayers having a joint AGI of less than $65,000 in 2020, or $66,000 in 2021. The credit may also be available to certain taxpayers who are heads of household with an AGI of less than $48,750 in 2020, $49,500 in 2021, or married individuals filing separately and singles with an AGI less than $32,500 in 2020, or $33,000 in 2021. Some of the restrictions that apply include: • the individual must be at least 18; • not a full-time student; • not declared as a dependent on another taxpayer’s return; or • any distribution from most retirement plans (qualified and non-qualified) will decrease the eligible contribution.

  • Employer Contributions 8.1 Rates at which the Employer shall contribute for each hour of work performed on behalf of each employee employed under the terms of this Agreement are contained in the Appendices attached to and forming part of this Agreement.

  • Annual Contributions □ Check enclosed in the amount of $ representing current contribution for tax year 20 . This contribution does not exceed the maximum permitted amount for the year of contribution as described in the Xxxx XXX Disclosure Statement. If no tax year is indicated, contribution will automatically apply to current year.

  • Company Contributions (a) For employees hired, rehired or who become covered under the CWA 3176 Agreement through any means before January 1, 2016, the Company shall contribute a Company Matching Contribution equal to 25 percent of the Participant’s Contribution up to a maximum of 6 percent of eligible wage.

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