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<<I contribute to a 401(k). Up until now I thought that I could *not* contribute to an IRA at the same time because I was already contributing to a retirement account. At least, if I did contribute to an IRA I couldn't deduct that contribution on my taxes. The new ROTH IRA complicates this but... Can I contribute to an IRA and deduct it on my taxes? Can I contribute to a ROTH IRA? I mean, contribute while I'm still socking money into my 401(k).>>

You can always contribute up to $2K to some type of IRA regardless of income and regardless of coverage under an employer's retirement plan.

To deduct your contribution to a regular IRA, your AGI must be below $30K if single and $50K if married. Between $30K and $40K (single) or $50K and $60K (joint), part of your contribution is deductible. Above those upper limits, nothing is deductible, but you can still contribute to an IRA.

The only other restriction is on the Roth IRA. You begin to lose the ability to contribute atan AGI of $95K (single) and $150K (joint). It's gone at $110K (single) and $160K (joint). Nevertheless, you can still go back to the nondeductible regular IRA at that point.

See IRS Pub 590, Individual Retirement Arrangements, for details.

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