Deducting IRA contribution when also having 401k

Forum|Forum|2 years ago
January 17, 2024
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For 2023 I contributed to a retirement 401k account through work.. with that in mind I would like to also deposit about 5,000 dollars into an IRA to lower my taxable income… am I allowed to do that since I’m contributing to a 401k at work or would I need to have my wife do that so I can deduct it?

DoninGA

Employee

You can if you are eligible based on your AGI and filing status.

Go to this IRS website for information - https://www.irs.gov/retirement-plans/2023-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work

Bluelex18Author

Based on the AGI I qualify.. but I’m hearing different things.. some people are saying that since I put money into an 401k with my company that I can’t open the IRA.. that my wife would have too or else I would be fined by the IRA and forced to withdraw the money out… not sure what to believe… trying to see what’s right and what’s wrong.

DoninGA

Employee

As stated on the IRS website - If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction