401K and traditional IRA contribution

[pmal2006]

I have enrolled in my company’s 401(k) plan. Am I still eligible to contribute to a Traditional IRA while contributing to the 401(k)? Additionally, what are the contribution limits if I am over 55 years old?

[dmertz · Accepted solution]

Yes, provided that box 1 of your W-2 shows enough compensation to support the contribution.  The overall contribution limit for someone over age 50 in 2024 is $8,000.  However, because you are covered by a workplace retirement plan, the traditional IRA contribution might partially or fully nondeductible depending on your modified AGI for the purpose and your filing status.