Contribution Question
Hello,
If a client has a Traditional IRA and joins their employer’s Simple IRA plan, can they fully fund both accounts?
Thank you!
Hello,
If a client has a Traditional IRA and joins their employer’s Simple IRA plan, can they fully fund both accounts?
Thank you!
Permalink Submitted by Alan - IRA critic on Thu, 2020-11-05 17:12
Yes, as long as earned income is sufficient. The TIRA deduction is subject to the MAGI limits as the SIMPLE IRA participation in a workplace plan triggers the MAGI limits. If MAGI is exceeded, the next best option is a Roth contribution if still within the higher Roth contribution MAGI. A non deductible TIRA contribution would be the least desirable option.