Question : Am I able to qualify for a deductible IRA if the only retirement plan my company offers is a 401K?
My question concerns only a fully deductible IRA, and the confusion over the IRS wording "to quality....you must not be eligible to participate in a company retirement plan". My company does not offer a pension plan , but does offer a 401k plan, so does that disqualify me from a deductible IRA ? Basically the question comes down to the defination of a "company retirement plan".
- asked by russelli
All Answers:
Answer #1
401k plan is considered a company retirement planfor what you are asking about. Note: actuallyparticipating is irrelevent. Your eligibility toparticipate is what drives this. You still may beable to qualify for it if your spouse (if any)doesn't offer a plan.Of course this assumes thatyou are over the income phaseout limits. Iassumed you were as you specifically mentioned thewording and didn't ask the typical vague question.
- answered by digdowndeepnseattle
Answer #2
It depends on your income.I believe the deductableIRA starts phasing out at about $50,000 peryear.If you are under this, you should be able todo both.
- answered by Wayne Z
Answer #3
Wow, that must be new because I have a 401K andhave been investing in an IRA for years.I willhave to look the code up.
- answered by CJ
Answer #4
You do qualify for an IRA if your company offers a401(k) plan. You qualify for a regular IRA if yourincome is less than 75,000 for 2006. You can makea partially deductible contribution if your incomeis below 85,000. These amounts increase for the2007 tax year to 83K and 103K.If you don't qualifyfor the deductible traditional IRA you may qualifyfor a non deductible ROTH IRA.
- answered by smh60437
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