The ability to make a regular IRA contribution and whether or not the contribution will be deductible are issues that are separate from the 401(k) distribution. With eligible compensation, a new, regular IRA contribution is permitted unless the taxpayer is 70½ or older in the year for which the contribution is made. Since curlyqtori_83 is probably an active participant in a retirement plan at work, the ability to deduct a regular traditional IRA contribution would depend on Modified AGI. It's also quite doubtful that such a contribution would be eligible for a Retirement Savings Contributions Credit due to the recent 401(k) distribution.
