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.

I can't quote you the exact phaseout, I belive it is at $50,000 before you can't contribute tax-free to a traditional IRA. Yes, I belive the phase out is from $40,00 to $50,000. Someone please concur or correct.

Yes you can keep your IRA and participate with the 401k at the same time. I believe you can put $2K/yr into your IRA and contribute upto approx $10.5K/yr into the 401k.

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

Greetings, Felicema, and welcome. You asked:

<<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. >>

As long as you have earned income and are under the age of 70 1/2, you may alwayscontribute to a traditional IRA. However, because you participate in a 401k plan, the deductibility of that contribution is contingent on your filing status and your Adjusted Gross Income. For details, see our IRA area at http://www.fool.com/Money/AllAboutIRAs/AllAboutIRAs.htm. If the contribution will be nondeductible, then almost certainly a contribution to a Roth IRA (assuming you meet the AGI contribution limits for that) will be better because of the ability to take tax-free withdrawals in your retirement.

Regards..Pixy