Can i contribute to a traditional ira if i have a 401k at work?

[IreneS · Accepted solution]

UPDATED FOR TAX YEAR 2019

Yes.  Even though you are covered by a retirement plan, you can still contribute to a traditional IRA and get a deduction, it just may be reduced.  If you are--

Single, and your modified adjusted gross income is:

• $64,000 or less - You get the full deduction
• more than $64,000 but less than 74,000 - partial deduction
• $74,000 or more - no deduction

Married filing joint return, and your modified adjusted gross income is:

• $103,000 or less - You get the full deduction
• more than $103,000 but less than $123,000 - partial deduction
• $123,000 or more - no deduction

Married filing separately*, and your modified adjusted gross income is:

• less than $10,000 - partial deduction
• $10,000 or more - no deduction

*Married individuals filing separately who live apart at all times during the year are treated as single.

[NOTE:  There is no impact on Roth IRA contributions if you are covered by an employer retirement plan.  These contributions, however, are not deductible on your return.]

Only contributions to a traditional IRA can be deducted on your return.  To enter contributions to a Traditional IRA in TurboTax, please follow these steps:

1. Click on Federal Taxes > Deductions & Credits  [In TT Self-Employed:  Personal > Deductions & Credits > I'll choose what I work on].
2. Scroll down to the Retirement and Investments section and click on the Start/Revisit box next to Traditional and Roth IRA Contributions. 
3. On the Traditional IRA and Roth IRA screen, mark the box for Traditional IRA and click Continue. 
4. On the screen, Did you Contribute to a Traditional IRA?  click the Yes box. 
5. Click the appropriate box on Is This a Repayment of a Retirement Distribution? 
6. On the Tell Us How Much You Contributed screen, enter the amount of your contribution and click Continue. 
7. Continue through the screens, entering the requested information.

 For more details on IRAs, please see the following IRS Publications:

• Publication 590-A - Contributions to Individual Retirement Arrangements (IRAs)
• Publication 590-B - Distributions from Individual Retirement Arrangements (IRAs)