No. of Recommendations: 1
Is there a limit to the amount one can contribute to retirement accounts? I spoke to someone today, and he said that since I have an employer sponsored 401k, and a 403b, I can't have a traditional IRA (at least I can't enjoy the tax benefits). I am not sure if that's correct, but where can I find it out? Now, I am aware of the limits on individual accounts (13k for 401k, 12k for 403b for this year), but is there an overall limit, or a limit to the number of tax deffered accounts one can have?

Given that you are enrolled in a company retirement plan, the ability to deduct your Traditional IRA contributions is restricted. It will depend on your filing status and your income.

For a complete breakdown of how you may qualify, see Page 15 of the IRS Publication 590.

If you are filing single or head of household, your AGI must be less than $34k for a full IRA deduction. AGI between $34k and $44k allows for a partial deduction and anything over $44k does not allow the contributions to be deducted.

If you are married filing jointly, the AGI ranges are less than $54k for a full deduction, $54k to $64k for a partial deduction and anything over $64k is no deduction.

If you are married filing separately, it is pretty safe to assume you will have no deduction as the limit is AGI of $10k.

Hope that helps with regard to the ability to deduct your Traditional IRA contributions.


Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.