[net.taxes] 401

gjs@mtgzy.UUCP (g.j.shevchuk) (09/10/86)

I'd like to clear up a few points regarding the new rules for IRAs.
Anyone can still have an IRA, where the interest/dividend income is
tax-deferred.  The deductability of the contributions to the IRA,
however, are allowed for any who do not have a company pension plan,
as well as for singles earning under $25K (even with a pension plan)
or couples earning under $40K.  The allowable deductible contribution
then decreases to zero linearly over the next $10K of income; i. e.,
singles hit zero at $35K, couples at $50K.