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long4li
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If you are enrolled in a company 401K but do not contribute the maximum allowed, can you make an IRA contribution for that year?

 
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CarolC
Level 6

If you are enrolled in a company 401K but do not contribute the maximum allowed, can you make an IRA contribution for that year?

It is possible and it depends on how much income you earn.

"To qualify for the full annual IRA deduction in 2017, you must either:

  1. not be eligible to participate in a company retirement plan, or
  2. if you are eligible, you must have adjusted gross income of $62,000 or less for singles, or $99,000 or less for married couples filing jointly.
  3. If you are not eligible for a company plan but your spouse is, your traditional IRA contribution is fully-deductible as long as your combined gross income does not exceed $186,000."

See this TurboTax article Tax Tips After January 1, 2018 for additional information.

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CarolC
Level 6

If you are enrolled in a company 401K but do not contribute the maximum allowed, can you make an IRA contribution for that year?

It is possible and it depends on how much income you earn.

"To qualify for the full annual IRA deduction in 2017, you must either:

  1. not be eligible to participate in a company retirement plan, or
  2. if you are eligible, you must have adjusted gross income of $62,000 or less for singles, or $99,000 or less for married couples filing jointly.
  3. If you are not eligible for a company plan but your spouse is, your traditional IRA contribution is fully-deductible as long as your combined gross income does not exceed $186,000."

See this TurboTax article Tax Tips After January 1, 2018 for additional information.

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