Permalink Submitted by Alan Spross on Wed, 2011-08-10 22:48
Yes, you can.
The 401k max salary deferral is 16,500 per year plus another 5,500 if age 50 or more.
The TIRA max is 5,000 plus another 1,000 if age 50 or more. Also, taxpayer cannot have reached age 70.5 and make TIRA contributions. Also must have at least the amount to be contributed as earned income.
However, there are income limitations to be able to DEDUCT that TIRA contribution because of your 401k contributions. If your modified AGI is too high, you can still make the contribution but it will be non deductible and you would report it on Form 8606. If you cannot deduct the TIRA contribution, then a Roth contribution would be better, but there are also income limits to make a regular Roth contribution.
The phasing out of your TIRA deduction starts at 56,000 modified AGI if you are single or 90,000 if married filing jointly. Note that the 401k contributions reduce your modified AGI and could help drop the figure to where you could deduct the TIRA contribution.
Permalink Submitted by Alan Spross on Wed, 2011-08-10 22:48
Yes, you can.
The 401k max salary deferral is 16,500 per year plus another 5,500 if age 50 or more.
The TIRA max is 5,000 plus another 1,000 if age 50 or more. Also, taxpayer cannot have reached age 70.5 and make TIRA contributions. Also must have at least the amount to be contributed as earned income.
However, there are income limitations to be able to DEDUCT that TIRA contribution because of your 401k contributions. If your modified AGI is too high, you can still make the contribution but it will be non deductible and you would report it on Form 8606. If you cannot deduct the TIRA contribution, then a Roth contribution would be better, but there are also income limits to make a regular Roth contribution.
The phasing out of your TIRA deduction starts at 56,000 modified AGI if you are single or 90,000 if married filing jointly. Note that the 401k contributions reduce your modified AGI and could help drop the figure to where you could deduct the TIRA contribution.