5 comments so far...

• Wayne Z Said on March 23rd, 2010 at 4:16 pm:
  

  Yes. You can contribute. Whether it will be tax deductible or not is another story. The phaseout for single people with 401ks starts at $52k per year and ends at $62k per year. So, if you make over $62k, you can make a Traditional IRA contribution, you just can’t deduct it.

• newjerseyguy Said on March 23rd, 2010 at 4:50 pm:
  

  Yes, you can. However, some or all of your contribution may not be tax deductible. See http://www.ira.com for details.

• StephenWeinstein Said on March 23rd, 2010 at 4:53 pm:
  

  You may contribute to a traditional IRA and contribute the maximum to a 401K for the same year. However, if you are “covered by” any retirement plan at work, including a 401K, whether or not you contribute the max, then you can only deduct your traditional IRA contributions if your “modified adjusted gross income” is less than a certain amount. (If your income exceeds that amount, you can contribute, but cannot deduct.)

  Because taxes on non-deductible IRAs are confusing, I recommend waiting until you know whether your income for the year will be above, below, or in the phase-out range before deciding whether to contribute.

  “For 2007, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified adjusted gross income (AGI) is:

  More than $83,000 but less than $103,000 for a married couple filing a joint return or a qualifying widow(er),
  More than $52,000 but less than $62,000 for a single individual or head of household, or
  Less than $10,000 for a married individual filing a separate return.
  For 2007, if you are not covered by a retirement plan at work, your deduction for contributions to a traditional IRA may be reduced (phased out) if you either live with your spouse at any time during 2007 or file a joint return for 2007.

  If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work, but you are not, your deduction is phased out if your AGI is more than $156,000 but less than $166,000.

  If your AGI is $166,000 or more, you cannot take a deduction for contributions to a traditional IRA.”

  All dollar amounts indicated above vary from year to year.

• Rich Jackel Said on March 23rd, 2010 at 5:43 pm:
  

  Its understood that you need write offs. However, you have exhausted your ability to write off any more money. If you do have discretionary money to save why not capitulate and do the Roth. Its the next best show in town. If the income limits are not a problem take advantage of it. Please read my profile.

• Traditional IRA and 401K? | Roth IRA, Traditional IRA, 401K | Self Directed Investor News Said on March 24th, 2010 at 12:00 am:
  

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