8606 Tally

Ok, so the deduction of my traditional IRA contributions depends on my having a 401k, which I haven’t had for most of my career.  Retirement rules are so fucked up.  I had it in 2007 and 2008, then not again until 2015.  So I should have been able to deduct the years 2012, 2013, and 2014.  Before that, I was likely too stupid to fund the IRA.

If you have an employer retirement plan and you earn more than $70k or so, you can’t deduct your IRA contributions.

https://www.irs.gov/uac/irs-announces-pension-plan-limitations-for-2012

For 2012, the limit was $68k

https://www.irs.gov/uac/2013-pension-plan-limitations

For 2013, the limit was $69k

https://www.irs.gov/uac/irs-announces-2014-pension-plan-limitations-taxpayers-may-contribute-up-to-17-500-to-their-401-k-plans-in-2014

For 2014, the limit was $70k if covered by workplace retirement plan

https://www.irs.gov/uac/newsroom/irs-announces-2015-pension-plan-limitations-1

For 2015, the limit was $71k

https://www.irs.gov/retirement-plans/plan-participant-employee/2016-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work

For 2016, the limit was $71k

So only about $11k of my $64k in my IRA I shouldn’t have to pay tax on.  I still have to convert $50k at California tax rates, which are fucked.

Isn’t it interesting that I’m taxed on income that goes to social security, medicare, etc.?  I pay tax on it, but I die the government keeps it!  What a fabulous deal for them.  2016 total tax rate was 25.7%

While I’m at it, here’s an updated tax and income:

tax and income.PNG

It dips in 2015 b/c I did some contract work in 2014 that gave me a little bump, and I didn’t do any extra work in 2015.  2016 is up b/c I negotiated more $.

tax rate.PNG

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