Leaving: Taxes: Lost Deductions
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HPAlumnipedia > Leaving > Taxes > Lost Deductions
Take into account some deductions that are lost at higher income levels. In particular, beware IRA contributions in excess of income-based limits.
Alan Silverstein, Apr 2003:
Yup, I had to withdraw prior to Apr 15, 2003 (the tax filing deadline) my 2003 Roth IRA contribution made in spring 2002 (the year I was laid off and received my severance package)... Groan.
From now on I don't make annual IRA contributions until after the tax year closes, when I know my status for sure. (You have until the tax filing deadline to make your contribution for the previous year.) Yes, the experts recommend that you make your contributions as early as possible to maximize your investment returns... But the pain of doing a correction outweighs (for me) the slight advantages of rushing.
