Traditional IRA and 401k contributions in same tax year
Single client has been unemployed since the beginning of 2019. Has a 3 month temporary assignment with no benefits/retirement plan that will pay her $35,000. It’s possible she will become full time in this or something else- receiving benefits/retirement plan eligibility. While on temporary assignment, can she contribute to traditional IRA and switch to 401kwhen eligible?
Permalink Submitted by Alan - IRA critic on Fri, 2019-05-24 21:06
If a TIRA contribution is made, and she participates in a qualified plan anytime this year, she becomes subject to the income limits to take the IRA deduction. But 35k is far below those income limits, so probably does not have to worry about not getting the deduction.