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I currently contribute the max allowed to my 401K every year.

I also have a Roth, but can no longer contribute due to AGI limitations.

Here is my question - could I also contribute $2K to a Traditional IRA? I realize this wouldn't be tax deductible - but at least the contributions would grow tax deferred

As long as you're under 70 1/2 and have $2,000 of earned income, you can contribute $2,000 to some sort of IRA. Because of your income and retirement plan coverage, your only choice is the nondeductible contribution to a traditional IRA. You'll report the contribution in Part I of Form 8606, thus establishing a basis so only the earnings are taxed when you take distributions in retirement.

Phil Marti
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