Since you have a 401k plan available to you whether you participate or not you are not allowed to claim a tax deduction for contributions to a traditional IRA.

Sorry, that's not correct. There are lower income limitations placed on the deductibility of IRA contributions for those who have a 401(k) or other retirement plan available, whether or not they choose to participate. Details specific to the OP's situation (income level, filing status and spouses' retirement plan availability) can be found in IRS Pub 590 http://www.irs.gov/pub/irs-pdf/p590.pdf

As an example, a singler person who is not covered by a retirement plan (including a 401(k)) at work is allowed to make a deduction for the full amount of the contribution they are eligible for, no matter what their MAGI (Modified Adjusted Gross Income). However, a single person who is covered by a retirement plan at work, is only allowed to make a fully deductible contribution if their MAGI is $56k or below, and is able to partially deduct a contribution with a MAGI of between $56k and $66k. The contribution is not fully non-deductible until their MAGI is greater tha $66k.

AJ