IRA Deduction with a 401k plan

[Bluelex18]

I’m looking to deposit money into a IRA in order to lower my taxable income.. I’m filling joint and married.. both me and my wife work, however I’m the only one with 401k and I’ve contributed to it in 2023. Am I still able to take a deduction from the IRA deposit of 5,000 if my company has a 401k?? 

[DoninGA]

Go to this IRS website for information on contributions to an IRA when you have a retirement plan at work - https://www.irs.gov/retirement-plans/2023-ira-deduction-limits-effect-of-modified-agi-on-deduction-i...

[Bluelex18]

Thanks… it looks like I’m below the AGI it’s stating.. so I should be good but can I have the IRA open in my name or would it have to be under my wife’s name??

[DoninGA]

If you are filing as Married Filing Jointly and both of you work and both receive compensation then you could open an IRA for both of you.  One in your name and one in her name.

[Bluelex18]

I understand that part. The part I have a question on is my company offers retirement benefits in form of 401k.. so I’m asking can I still open a IRA ( deposit 5,000) and use it as a tax deduction or is that not allowed since I have a 401k already.

[DoninGA]

Yes, you can open an IRA and the contribution amount will be tax deductible on your 2023 return if the IRA is funded on or before April 15, 2024.

[DoninGA]

And only contribution to a Traditional IRA are tax deductible.  Contributions to a Roth IRA are not deductible.

The contribution limit for tax year 2023 is $6.500 if you are under age 50 and $7,500 if age 50 or older.