Re: Can IRA contribution be deductible even with SEP-IRA or 401K?

From: Jeff Salisbury <jeff.salisbury@xmission.com>
Subject: Re: Can IRA contribution be deductible even with SEP-IRA or 401K?
Date: Thu, 09 Mar 2000 08:58:19 -0700

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juanb@vnet.ibm.com wrote:
> 
> I was under the assumption that if you were covered at work by a
> deferred compensation plan like a 401K or SEP-IRA, that you couldn't
> make a deductible contribution to an IRA.  However, when doing my
> parents taxes with Kiplinger's Taxcut, it gave my mother the
> deduction even though she has a SEP-IRA plan at work.  Is there some
> earnings check done as well to determine if it can be deductible?
> Been trying to access the IRS site, but having no luck at work getting
> out of the firewall :(
> 
> Thanks,
> Juan
> 
> -

Juan, 

If you do not participate in an employer sponsored retirment plan, you
are eligible to contribute to IRAs regardless of your income.

If you do participate in a employer sponsored plan, your eligibility is
phased out based on your income:

  Traditional IRAs:
    Single: Phased out between $31K and $41K
    Married Filing Jointly: Phased out between $51K and $61K

  Roth IRAs:
    Single: Phased out between $95K and $110K
    Married Filing Jointly: Phased out between $150K and $160K 

Jeff

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