Hello My brother contributed 4,000.00 to his traditional IRA account for 2007 . His only source of income is one W2 from an employer with income in box 1 of approx. $3,000.00. He contributed approx. $2,000.00 to an employer sponsored
401k plan . My question is the amount of earned income my brother has in order to determine his IRA deduction . Is the amount 5,000.00 or 3,000.00 ? Another way of stating the question is the earned income reduced by the contribution to the employer's 401 k plan ? If so my brother IRA deduction becomes only 3,000 and not 4,000.00 .Any help is greatly appreciated .
Regards Mason