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Investing/Strategies / Retirement Investing
|Subject: Re: 401k and IRA deductions||Date: 1/2/2001 12:29 PM|
|Author: tsouth||Number: 26886 of 75525|
If I utilize my company's 401k program and contribute over $2000/yr, and if I also contribute $2000 to my traditional IRA, am I no longer allowed to make a $2000 deduction from the IRA contribution?
In that case, I'd be better off opening a Roth IRA...right?
If your company even offers a 401k and you are qualified to put into it, but don't contribute, then you CAN NOT deduct a contribution to a Traditional IRA.
If you want to put some money into a 401k and some into an IRA, there would be more of a tax benefit to open a Roth IRA. You might also consider putting more into your 401k before you start a Roth IRA.
Best of Luck,
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