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I contributed to an IRA for several years before being hired by my present employer. I now have the opportunity to contribute
to a 401K. Can I keep the IRA and 401K, or do I have to choose one or the other. It's a traditional IRA.

Sorry, the previous response you received was not totally correct.
Yes you may keep your existing IRA. However, your ability to decuct the $2,000 per year may be limited or eliminated because you are eligible for a 401k. It does not matter if you participate, as long as you are eligile you may not be able to deduct the $2,000 IRA contribution. Whether you are able to deduct the $2,000 depends on your Adjusted Gross Income (AGI) and your filing status (Single, Married/jointly)
You may contribute the full $10,500 to the 401k pre-tax

I believe the income levels for the IRA are in the neighborhood of $35,000 if your single and $50,000 for married (not positive, maybe someone else can confirm these). Anything above those figures and you cannot deduct the $2,000 to the IRA. You may still make the contribution and enjoy the tax deferred earnings, you just can't deduct the $2,000 from your income.
Best be would be to contribute the most you can to the 401k up to $10,500 pre-tax, and take full advantage of any matching funds.

Good luck

Bill
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