Contributing to a SIMPLE-Ira & a Traditional IRA
I have a client that just started contributing to a SIMPLE-IRA at her workplace. She wants to contribute $2,000 to her traditional IRA for tax year 2009 as well. The combined contributions for 2009 will be less than $6,000 (she is over 50); will they be fully deductible?
Permalink Submitted by Alan Spross on Thu, 2009-10-15 19:26
She will be covered by a retirement plan at work, and therefore her modified AGI will have to be under the limit for her marital filing status to deduct any TIRA contributions. If she cannot deduct it, the Roth IRA income limit is slightly higher and would be the next best option.