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. My spouse has little/no income. Can I contribute to my spouse's IRA?

    Yes. You may make a Traditional IRA contribution to your spouse's Traditional IRA because you have eligible compensation.There ... Read Answer >>
  2. I make over $100,000/yr and my adjusted gross income precludes standard IRA contributions. ...

    With an adjusted gross income (AGI) of more than $100,000, only your eligibility to deduct contributions to a Traditional ... Read Answer >>
Related Articles
  1. Financial Advisor

    Traditional IRAs Tutorial

    This comprehensive guide goes through what a Traditional IRA is and how to set one up, contribute to it and withdraw from it.
  2. Retirement

    Making Spousal IRA Contributions

    Eligibility requirements, contribution limits and tax deductions all change with one little ring.
  3. Retirement

    IRA Contributions: Deductions and Tax Credits

    We outline the incentives and help you take full advantage of the benefits.
  4. Retirement

    How Much It Takes to Max Out Your IRA

    IRAs have certain tax advantages that allow your nest egg to grow at a faster rate. But there are annual limits on how much you can contribute.
  5. Retirement

    Roth vs. Traditional IRA: Which Is Right For You?

    To answer this question, you need to consider several of the factors we outline here.
  6. Financial Advisor

    IRAs: Top Things You Need to Know About Them

    By understanding the major rules for both traditional and Roth IRAs, you'll be prepared to enjoy the benefits of these investment opportunities.
RELATED TERMS
  1. Individual Retirement Account - IRA

    An investing tool used by individuals to earn and earmark funds ...
  2. IRS Publication 590: Individual Retirement Arrangements (IRAs)

    A document published by the Internal Revenue Service (IRS) that ...
  3. Roth IRA

    A Roth IRA is an individual retirement plan that bears many similarities ...
  4. Recharacterization

    The treatment of a contribution as being made to another type ...
  5. Spousal IRA

    A type of individual retirement account that allows a working ...
  6. Revoked IRA

    An IRA holder may revoke an IRA within the 7 days after the IRA ...
Hot Definitions
  1. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  2. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  3. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
  5. Wash-Sale Rule

    An Internal Revenue Service (IRS) rule that prohibits a taxpayer from claiming a loss on the sale or trade of a security ...
  6. Porter Diamond

    A model that attempts to explain the competitive advantage some nations or groups have due to certain factors available to ...
Trading Center