So this year I contributed 5500 to my and my wife's traditional IRAs for 2016, and then as we had the cash on hand I invested 5500 each for 2017.
We met with our accountant and he said that we can not contribute to IRA due to my wife's 401k that she gets from her job (she is maxing out 18000 per year).
Everything I have read says that we can place money in BOTH 401k and traditional IRAs, so my question is was my accountant wrong or is there some other reason that we can not do this. He said that I needed to move that money to a "non-deductable account" and so I performed a return of excess contributions on these contributions and in order to do that I had to liquidate the stocks that I had invested the money into. Now I am facing gains and early withdrawl penalty on those funds.
Am I getting bad advice from our accountant? What can I do to reverse this mistake?
Thanks
We met with our accountant and he said that we can not contribute to IRA due to my wife's 401k that she gets from her job (she is maxing out 18000 per year).
Everything I have read says that we can place money in BOTH 401k and traditional IRAs, so my question is was my accountant wrong or is there some other reason that we can not do this. He said that I needed to move that money to a "non-deductable account" and so I performed a return of excess contributions on these contributions and in order to do that I had to liquidate the stocks that I had invested the money into. Now I am facing gains and early withdrawl penalty on those funds.
Am I getting bad advice from our accountant? What can I do to reverse this mistake?
Thanks
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