You Asked Us - IRA Deductibility

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• Q:If an individual works for only a few weeks, is that individual an active participant for that year?
• Q: An individual is ineligible to deduct his traditional IRA contribution, and has decided to make a nondeductible contribution.  I understand that he needs to keep track of his nondeductible contribution, so as to prevent the amount from being taxed when distributed.  Should he establish a separate traditional IRA for this?
• Q: How does an individual determine if he is an active participant?
  
• Q: Are there any exceptions that would allow me to receive plan benefits and not considered an active participant?
  
• Q: I am 39 years old, and eligible to deduct $ 2,000 of my Traditional IRA contribution. Can I contribute the difference to a Roth IRA?
  
• Q: My Tax Filing status is “Married Filing Separately”. Are there any exceptions that would allow me to use another tax-filing status so that I fall within a more favorable phase-our range?
• Q: Can an individual take the deduction for a traditional IRA contribution and still receive the Saver’s Credit?
• Q: I have a client who changed jobs in February 2007. He had one month’s contribution flow into a 403(b) plan in January 2007 from his former employer’s 403 (b) plan . He’s now with an employer who has a 401(k) plan. He’s eligible for the 401(k) plan but he’s not able to contribute due to top heavy restrictions. His household income will fall around $150,000 MAGI for 2007. Is he able to fund his own IRA and/or Roth for 2007 (assuming Roth income limits are met)?Is his wife able to fund her own IRA and/or Roth for 2007? (she is a stay at home mom)? They file a joint tax return

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