If I am currently contributing 25% to my 401K at work, is it possible for me to also open a traditional IRA?

Question

I want to be able to contribute to a traditional IRA so I may deduct more off my taxes. Is it possible... Please provide sources.

Answer 1

We gots three wrong answers above, today.

If you participate in an employer plany, you CAN open a traditional IRA ONLY if your income is below a certain amount. If you are filing single, then it's under $50K (but a reduced amount is allowed up to $60K income).

You may not make contributions totaling more than your wages.

You may not contribute in total more than the maximum amount allowed in the employers plan.

The WealthBuilder
Tax Specialist

Answer 2

If particiapte in a employeer sponsored retirement plan you may be able to contribute to a traditional IRA if your income is below the phase out.
In 2006 if you were an active participate of an employee sponsored plan the phase out for IRA dectutions started at 50K and was fully phased out at 60K for a single taxpayer.

It is highly advisable that you ask a tax professional. If you make less then 60K you can do this inpart, if you make more you can not.

Answer 3

yes you can, you can paticipate in all difrent retirment accouts, but the must be diffrent. (you cannot have more than IRA, Roth IRA or 401K)
Are other retirement investments and IRAs possible at the same time?

Taxpayers can have a traditional IRA at the same time they participate in other retirement plans. However, their contributions may not be tax-deductible, depending on their filing status and adjusted gross income.

http://www.ext.vt.edu/news/periodicals/fmu/2000-08/whyIRA.html

Answer 4

No, you would only be able to contribute to a nondeductible IRA. You wouldn't get a deduction currently for your contribution, but the earnings of the IRA would be tax deferred.

Answer 5

Yes, you can contribute to an IRA, it doesn't matter if its a Roth or traditional.