Can I contribute to an outside IRA, if i participate in a 401K plan at work?

ANSWER

The BIDaWIZ Team's Answer:

You can certainly still contribute to a traditional IRA, even if you are covered by your employer's 401(k). However, the amount of the contribution that you can deduct may be limited; depending on your filing status and adjusted gross income. If you're single and earn $59,000 or less, then you can claim a full deduction. Single filers with an adjusted gross income above $59,000, will only receive a partial deduction and be completely phased out at $69,000 or more. If you are married filing jointly or a qualified widower and earn $95,000 or less, you can claim the full deduction. If your income is more than $95,000, but less than $115,000, you can claim a partial deduction. You will lose the entire deduction as a joint filer, should your income be $115,000 or more. Those filing as married but separately, can claim a partial deduction if their income is less than $10,000. They completely phaseout at $10,000 or more.