<< I have around $5000 in a 401(k) plan and have decided to change jobs. I've decided to roll the 401(k) money into a traditional IRA. My new employer doesn't have a 401(k) plan, so I'm planning on regularly putting away a portion of my pay into the IRA. I understand that I am able to make $2000 worth of deductible contributions to the IRA annually. >>Sorry about the delay in responding to this. Things have been kind of hectic over on the Tax board. Can't imagine why.You've already been correctly told that your rollover does not count agains your annual IRA contribution limit. I just want to caution you about deductibility of your traditional IRA contributions.If you are covered ONE DAY of a year by an employer plan, you are considered covered for the entire year, and your traditional IRA contributions will be subject to the AGI phaseout of deductibility. Thus, if you switch jobs this year, you may not be able to deduct traditional IRA contirbutions for year 2000.TMF ExROPhil Marti
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