Why does Turbo Tax allow us to enter a contribution to a traditional IRA if we contribute to a 401k with our employer
An accountant told us you cannot make a traditional IRA contribution if you contribute to a 401k through your employer. Why is Turbo Tax program is allowing us to add a Traditrional IRA contribution?
The accountant may be a bit off (or you may have misunderstood each other). You can contribute to an IRA even if you are covered by a retirement plan from your employer. However, the amount that you can deduct may be limited by your MAGI. This doesn't prevent you from making a contribution - it reduces the amount that can be deducted.
The income limits for making deductible IRA contributions are found at these two links:
