No. of Recommendations: 2
Actually, even if you are covered by a 401K, and regardless of whether or not you participate, you can still contribute to a TIRA. (new rules)

Those are very old rules, going back at least to the early 1990s.

For a long time now, you've been able to make a traditional IRA contribution as long as you have earned income.

The question is whether you can DEDUCT those contributions. And that is where the question of participating in an employer's plan comes in. If you do participate, you have a lower AGI restriction on DEDUCTING your IRA contribution than if you don't participate.

--Peter
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement