Employer Retirement Plan
I currently participate in my employer’s Defined Benefit Plan. I am not vested, but have made small monthly contributions. I have lost all contributions due to the market. Can I make contributions to a separate IRA account, where I can control the investments?
Permalink Submitted by Alan Spross on Tue, 2009-03-03 20:31
Anyone with earned income can contribute to a traditional IRA, but your contribution may not be deductible because you are considered covered by a retirement plan at work. You could also make Roth IRA contributions if you modified AGI is not too high.
Starting next year, anyone can convert a traditional IRA to a Roth IRA since the income limit for conversions will no longer apply. If you make non deductible IRA contributions now, you can convert to a Roth IRA next year with part of your contribution being tax free in proportion to the amount of your non deductible IRA contributions made previously.