I had a question regarding the Rollover/Traditional IRA account. Both me and my wife have a 401k through our work (both work for publicly traded companies) for which we make contributions (every paycheck). Can we contribute to the Traditional IRA account (5.5k/year) instead of the Roth IRA and claim tax deductions? The rule says, we can claim if we dont have a retirement plan at work.
Anyone can contribute to a Traditional IRA regardless of income. Whether or not you can deduct your contribution depends on a couple of things: 1) Your MAGI - for 2016, married filing jointly, your AGI has to be < 98,000 to claim a full deduction. If you income is above this amount, you can make the contribution, but it will be non-deductible. 2) Whether or not you are covered by a retirement plan - if you are both not covered by a plan, you can each contribute & deduct the contribution...regardless of MAGI.
You are both covered by a plan, so the deduction comes down to how much you earn (MAGI).
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