Deductible IRA contribution
Single individual makes $120,000 per year, she has access to 401k thru employer but does not participate due to zero match and limited investment options. Can she make a deductible TIRA contribution since she does not participate in the employer sponsored plan?
Permalink Submitted by Alan - IRA critic on Thu, 2020-02-06 15:38
Maybe. Depends on whether the employer made any contributions to the 401k or if there is a DB plan in place. The easiest way to determine this is to simply look at the W-2 just issued and see if the retirement plan box is checked. If not the individual is not subject to income limits and can deduct the contribution. Of course, if there is more than one employer, all W-2 forms must be checked to be sure the retirement plan box is not checked.