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Can I contribute to traditional IRA as I was not able to max out in 401K due to part year employment?"

 
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dmertz
Level 15

Can I contribute to traditional IRA as I was not able to max out in 401K due to part year employment?"

You can contribute to a traditional IRA as long as box 1 of your W-2 shows sufficient taxable compensation to support the contribution and you have not reached the year in which you turn age 70½.  Since you were covered by a retirement plan at work for 2017, whether or not the traditional IRA contribution will be deductible will depend on your modified AGI and your filing status.

See How Much Can You Deduct?https://www.irs.gov/publications/p590a#en_US_2016_publink1000230433


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3 Replies
dmertz
Level 15

Can I contribute to traditional IRA as I was not able to max out in 401K due to part year employment?"

You can contribute to a traditional IRA as long as box 1 of your W-2 shows sufficient taxable compensation to support the contribution and you have not reached the year in which you turn age 70½.  Since you were covered by a retirement plan at work for 2017, whether or not the traditional IRA contribution will be deductible will depend on your modified AGI and your filing status.

See How Much Can You Deduct?https://www.irs.gov/publications/p590a#en_US_2016_publink1000230433


Can I contribute to traditional IRA as I was not able to max out in 401K due to part year employment?"

That link is for 2016. Here are the 2017 figures:
<a rel="nofollow" target="_blank" href="https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-i...>
dmertz
Level 15

Can I contribute to traditional IRA as I was not able to max out in 401K due to part year employment?"

Thanks SweetieJean.
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