IRA Contribution History
I recently read that initially IRA Contributions were limited to $1,500,
Only if you didn’t participate in a Qualified Plan could you have an IRA
The $1,500 was also limited to 15% of Compensation
That I knew
But then the article said the contributions initially weren’t deductible
Does anyone know if that last point was true or not?
And if it was which law made them deductible?
Permalink Submitted by Alan - IRA critic on Fri, 2020-09-11 22:00
Individual Retirement Accounts were established by ERISA in 1974 for workers who did not have employer-provided pensions. In the Economic Recovery and Tax Act of 1981, eligibility was extended to all workers and the contribution limits were raised starting in 1982. The Tax Reform Act of 1986 restricted income eligibility for deductible contributions again starting in 1987. Basis tracking of ND contributions also started in 1987.