if i already have a SEP IRA, can i also create a regular IRA and contribute to it in the same year?

Question

i'm doing taxes in turbotax and have found the maximum amount i can contribute to my SEP IRA for 2006. Separately, I've seen ads for creating an IRA account for up to $4,000. can i do both? separately, my wife has a 401(k) account at work. can she do an IRA too for the maximum amount?

Answer 1

You are both covered by employer plans. Although you might be able to open an IRA, whether or not the deposits will be deductible will depend upon your AGI. For a couple filing jointly, I believe the deduction for IRA contributions when covered by an employer plan starts to fade at $80,000 and is gone by $90,000