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|Subject: Re: 401k max and and Roth||Date: 5/4/2013 3:11 PM|
|Author: ptheland||Number: 72188 of 73906|
just curious-- when did that change?
Possibly before I started doing taxes in 1983.
I'm sure that when I was working, if you had 401k, you couldn't contribute to trad.IRA (no?
Yours is a very common error. People confuse making a contribution with getting a deduction.
For the last couple of decades or so, you can always contribute to a traditional IRA if you have earned income, but you couldn't always deduct that contribution. If you have a retirement plan at work - and a 401k is one of many kinds of retirement plans - your ability to deduct an IRA contribution is pretty limited. Currently, the limits are about $90k for married people and $60k for singles. These limits are indexed for inflation, so have been lower in the past.
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