John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Individual Retirement Accounts – IRAs

Traditional IRA:

This is the one that has been around for a long time. The traditional IRA gets broken down further into “deductible” and “non-deductible”. Funding $ amounts and timing are the same for both.

Most people would prefer to deduct their IRA contribution (if they can). The reason a traditional IRA contribution would not be deductible would be that a person has both retirement plan coverage at their place of employment and income over a certain limit.

“What are those income limits and what about my spouse’s retirement coverage?”

“So why would I want to do a non-deductible IRA – does it make any sense?”

"How are distributions from "traditional" IRAs taxed?"

"What about minimum distributions when I reach age 70 ½?"