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Greetings, Atienza, and welcome. You asked:

<<My company started the 401k on December so this year I contributed $650, my question if I contribute to my Traditional IRA acccount with $2000, may I write off $2000 or only $1,350 (2,000-650)>>

Your participation in the 401k may reduce or even eliminate the deductibility of an IRA contribution depending on your tax filing status and your AGI. Joint filers participating in retirement plans at work may deduct up to $2K each of their IRA contributions when their AGI is $52K or less this year. They may deduct part between $52K and $62K, and nothing when AGI exceeds $62K. The AGI range for a single filer is $32K to $42K in 2000. (Reduce those ranges by $1K for 1999 IRA contributions.) For details, see our IRA area at http://www.fool.com/money/allaboutiras/allaboutiras.htm.

Regards..Pixy
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