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Wiggy4 writes (in part):

The way I understand (and I'm sure I'll be corrected if I'm wrong)it is that if you participated in a defined contribution plan or a defined benefit plan anytime during a tax year you are not eligible to participate in a traditional IRA (deductible), but you may participate in a Roth IRA (non-deductible).

I reply:

Wrong again, I'm afraid. <hint>As discussed in the Taxes FAQ,</hint> even participants in defined contribution or defined benefit plans may make deductible IRA contributions if their AGI is sufficiently low. However, as long as you have earned income, you may always contribute to a non-deductible IRA, no matter how high your income. But if you're in this position, of course, it's much better to contribute to a Roth IRA, provided that you're not in or above the phase-out range.

I've omitted any discussion of SIMPLE IRAs because I don't know anything about them. Another great resource, though, if you haven't already discovered him, is TMFPixy on the Retirement Investing board. --Bob
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