Hellobee Boards

Wrong section of Tax Act to report that - that's for IRAs, not 401(k)'s. It should come up when it's asking for you to enter your W-2 information. Wall me if you need any other help!

To answer your question, IF you had IRA contributions, deductibility is based on your modified adjusted gross income. Information can be found here:

http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/2014-IRA-Contribution-and-Deduction-Limits-Effect-of-Modified-AGI-on-Deductible-Contributions-If-You-ARE-Covered-by-a-Retirement-Plan-at-Work

@LBee: i agree, that's why i'm surprised. If it's 5k growth due to additional contributions or employer contributions, then it wouldn't be all growth, but she describes it as 5k of gains on 10k.

ohh but now i see what you're saying.. it's not the first year of contributions so there could have been a much bigger balance, so it's not 5k on 10k, it's 5k on the balance. got it

@Littlebit: Your gain / loss should have nothing to do with your taxes. Just focus on the 2014 contribution number - that's all that matters. 401(k)'s are tax deferred so that gain / loss is a moot point.

As an aside, did anyone else think of Joey on Friends with the "moot point" comment?

@LBee: in my 401k you can invest in individual stocks/funds. I had one tech fund that made 62% this year, so it is possible. My default fund only did like 8% this year, but way better than a savings account!

@LBee: too bad I only had a tiny fraction in that fund though! It would have been awesome if it was the whole account!