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)



Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  3. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  4. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  5. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the amount ...
  6. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...
Trading Center