Message Font: Serif | Sans-Serif
No. of Recommendations: 1
In the view of the IRS it does not matter whether you actually participate or not as long as you are eligible. The fact that you are eligible for a 401k or other Qualified Defined Contribution Plna will affect your ability to deduct contribtuions to a Traditional IRA. Please refer to the excellent post (as usual) by MarkOYoung for the details. The IRS is notified of your eligiblity status each year on your Form W-2. I believe it is box 13 on the w-2 that indicates if you are eligible. Whether you participate is not a factor to the IRS.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.