Lorenzo wrote: "You can either put $2400 (post-tax) dollars into a Roth, or $3000 (pre-tax) dollars into a Traditional. (Since you're in a 20% bracket, that $3000 reduction in your taxable income reduces your tax by $600, so you've made exactly the same $2400 contribution...)"

Ok, I have to admit that I am confused (not about the above math, but about the options). I was always under the impression that for those of us who contribute to a 401k at work with a company match and/or have a company pension are not able to contribue to a Traditional IRA and claim the tax deduction. Am I misunderstanding the options?

My situation: I contribute the max to my 401k and my company matches a portion of that contribution. At my current job I am not covered under a pension. I was covered under a pension under a previous job, but since I was at that job less than 5 years, the pension plan sent me a check when I left the job (early 1998).

Thanks,
MusicFish.