Contribution to Trad IRA

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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.

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https://www.irs.gov/retirement-plans/plan-participant-employee/2...

also check out the link for MAGI in that reference

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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