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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25214  
Subject: Re: AGI, Safe Harbor, and an IRA? Date: 1/28/2014 9:48 PM
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See page 15 of Publication 590--

It matters only whether you are offered a plan, whether or not you participate. And your employer checks a box on your W-2 to indicate if you are covered.

So if you are single, you can contribute to an IRA, but it is not deductible. It is deductible if you are married and file a joint return.

But note, the $6500 annual contribution limit applies to the sum of your Roth and traditional IRA contributions.

The larger contribution limits of your 401k could make contributions there too attractive. Roth and IRA give you better control and ideally better investment returns, but at some time in the future the 401k can be rolled over to an IRA and converted to a Roth. That can give you a much better nestegg to retire on (if you can fit the larger contributions into your budget).
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