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There are no tax problems about contribution to a IRA and 401K at the same time.

The income limits are low for deducting a traditional IRA. The income limits are much higher for a ROTH IRA and no reporting of contributions is required on her federal tax return and probably not for state. The administrator reports contributions to the IRS.

If she is ineligible for a ROTH then there is no income limit for non-deductible traditional IRA contributions. An additional form is required with the tax return to account for non-deductible contributions.

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