Deducting IRA contribution when also having 401k

[Bluelex18]

For 2023 I contributed to a retirement 401k account through work.. with that in mind I would like to also deposit about 5,000 dollars into an IRA to lower my taxable income… am I allowed to do that since I’m contributing to a 401k at work or would I need to have my wife do that so I can deduct it?

[DoninGA]

You can if you are eligible based on your AGI and filing status.

Go to this IRS website for information - https://www.irs.gov/retirement-plans/2023-ira-deduction-limits-effect-of-modified-agi-on-deduction-i...

[Bluelex18]

Based on the AGI I qualify.. but I’m hearing different things.. some people are saying that since I put money into an 401k with my company that I can’t open the IRA.. that my wife would have too or else I would be fined by the IRA and forced to withdraw the money out… not sure what to believe… trying to see what’s right and what’s wrong.

[DoninGA]

As stated on the IRS website - If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction

[Wadeeli]

Do NOT listen to other people regarding this sort of thing. When you're dealing with something like this, talk to the people who would know, like an HR person or an accountant. If neither one seems satisfactory, keep trying for advice, but not from a co-worker or a brother-in-law or a casual friend.

One good place: An insurance agent, especially one with a CFP or a CLU designation. Try your insurance guy, and he can always check with home office, and you better believe they'll know what to do in your situation.