Can I now contribute to a tax-deductible IRA if I lost my job, where I had contributed to a 401k in that same year?

Also, my wife is employed and contributes to a 401k. My age is 57.

401(k), IRAs
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October 2016

Your participation in the 401(k) plan for that year makes you an active participant and therefore by IRS rules, you may not be eligible to claim a deduction for a “Traditional IRA” contribution depending on your compensation level. Once you become an active participant, you unfortunately retain that status for the year.

The income limitations change from year to year and your wife’s active participation status is also important. The IRA contribution would be deductible if both husband and wife were active participants who elect to file taxes jointly, and make under $98K in 2016.

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