If someone’s receiving severance, if they can’t contribute to their 401(k), are they allowed to make IRA contributions?
If someone’s receiving severance, if they can’t contribute to their 401(k), are they allowed to make IRA contributions?
Thanks for the help!
Permalink Submitted by Alan - IRA critic on Thu, 2019-03-07 23:59
Perhaps. If they are not an active participant in a workplace plan for the entire year, and if married their spouse is also not an active participant, a TIRA contribution can always be deducted. If either is a participant in a retirement plan, there are income limits over which the contribution can still be made, but cannot be deducted. There are also income limits over which a Roth contribution cannot be made.