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

From: Rich Carreiro <rlcarr@animato.arlington.ma.us>
Subject: Re: Can IRA contribution be deductible even with SEP-IRA or 401K?
Date: Thu, 9 Mar 2000 14:07:10 -0500

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>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.

That is a common, though incorrect, assumption.  If you are covered by
a retirement plan at work you become subject to a gross income test
on whether or not a traditional IRA contribution will be deductible.
Depending on your gross income, some, all, or none of your trad IRA
contribution may be deductible.  See Publication 590 or the Form 1040
instructions for more details on the calculation.

Rich Carreiro                            rlcarr@animato.arlington.ma.us

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