Hello community! In Feb. 2025 I will leave employer A where I am covered by a 401k. I made a few contributions to that 401k in 2025 (Jan and Feb only). I will be working as a W-2 contractor for employer B through an agency and I am not eligible to participate in the agency's 401k until 2026. I am also expecting to make more than the income limits for traditional IRA deductibility (of roughly $77k - $87k in 2024 - I don't know these numbers for 2025 yet as of the time of this post).
My question: Will the IRS not allow me to contribute to the IRA AND take the full deduction in this case? Will they view my participation in employer A's 401k from Jan - Feb as "being covered by an employer's plan at work" even though I will not be eligible to participate in employer B's plan for much of the year. Should I contribute to a Roth Instead?
