the IRA deduction of a working 60+ year old

[Skate1968]

I'd like to advise someone to take full advantage of an IRA deduction. It's my understanding that this working 60 year old may deduct up to 5K in contributions to his IRA. And if need be take the $$ out tomorrow. Is this correct?

Can i tell him to put contribute 2 or 3K, dedction that amt on his 2006 return, and tell him the $$ he can withdraw it tomorrow with no penalty if need be? (I'm aware that he'll need to recognize it as income)



Again, thanks, as always.

[Kram BergGold]

Sure

I worked this same game a few years ago. Client had high income, was 60 years old, knew that the following year income would drop, so money went into IRA and right back out.

[Skate1968]

Cheers KBG,

thanks for confirming.