A:

No. An individual's participation in an employer-sponsored plan (including a 401(k) plan) does not affect his or her ability to make a contribution to a Traditional IRA. The participation in an employer-sponsored plan may, however, affect the individual's ability to deduct the Traditional IRA contribution. For an individual who is an active participant, the ability to deduct a Traditional IRA contribution is determined by his or her tax-filing status (i.e., married filing jointly, separately, or filing single) and adjusted gross income.



(For information about an individual's ability to deduct a Traditional IRA contribution, see Traditional IRA Deductibility Limits.)



This question was answered by Denise Appleby
(
Contact Denise)



RELATED FAQS

  1. How do gains from my 401(k) figure into my taxable income?

    Understand what a 401(k) is and how it's used to help employees save for retirement. Learn how gains from a 401(k) figure ...
  2. Does my employer's matching contribution count towards the maximum I can contribute ...

    Maximize 401(k) contributions on your own without fear; employer contributions are separate and do not hinder you contributing ...
  3. How much will an employer generally contribute to a 401(a) plan?

    Find out how much employers may contribute to an employee's 401(a) retirement plan and why this amount can vary so widely ...
  4. When can benefits be received from a provident fund?

    Find out when participants in provident funds can begin receiving benefits, including how funds can be used to finance important ...
RELATED TERMS
  1. Qualified Longevity Annuity Contract

    A Qualified Longevity Annuity Contract (QLAC) is a deferred annuity ...
  2. See-Through Trust

    A trust that is treated as the beneficiary of an individual retirement ...
  3. Backdoor Roth IRA

    A method that taxpayers can use to place retirement savings in ...
  4. Current Service Benefit

    The amount of pension benefit accrued by an employee who had ...
  5. Self Invested Personal Pension (SIPP)

    A tax-efficient retirement savings account available in Great ...
  6. Senior Move Manager

    Senior move managers (SMMs) help seniors downsize and relocate ...

You May Also Like

Related Articles
  1. Stock Analysis

    General Electric Returns Vs The Dow ...

  2. Retirement

    How to Battle Inflation During Retirement

  3. Retirement

    Does it Make Sense to Have an MLP in ...

  4. Stock Analysis

    When Will Google Get Its Mojo Back?

  5. Retirement

    Top Tips for Rebalancing 401(k) Assets

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!