Deduction status of IRA contibution if eligible for 401k

Submitted by Mike LaRose on Mon, 2018-02-12 23:41

If you are eligible, but not participating, in a 401k; can you still make deductible IRA contributions? Will deduction be determined by income limits?

Thanks,

Mike



Submitted by Alan - IRA critic on Mon, 2018-02-12 23:54

  • Check if Box 13 is checked on the W-2 if you are an employee and not self employed. If no check and not contributing to any plan for self employment, a deductible contribution can be made. If married, the same questions must be determined for the spouse. There is an income limit if only the spouse is participating, but it is higher than the limit for the taxpayer if taxpayer is single.
  • For a 401k, the box 13 will not be checked if you do not contribute and the employer does not make a contribution for you for the calendar year. If you are eligible for a DB plan, the box will be checked.

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