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-   -   IRA Contributions with a 401K (https://www.askmehelpdesk.com/showthread.php?t=683524)

  • Jul 16, 2012, 02:47 PM
    genemats
    IRA Contributions with a 401K
    Hello, I was employed with a company with 401K plan for one month in January. I don't have the exact figures, but the most I contributed to the 401K plan was $200-$300.

    I left the company in February. Can I contribute anything to IRA for the 11 months I was not covered by any 401K?
  • Jul 16, 2012, 02:52 PM
    ScottGem
    Even if you were covered by a 401(k) you can contribute to an IRA.
  • Jul 16, 2012, 03:37 PM
    AtlantaTaxExpert
    What Scott says is true, IF your income is low enough.

    If your annual income exceeds certain limits, then the IRA option is NOT avaiable to you.
  • Jul 18, 2012, 12:04 PM
    newacct
    To add, there are different types of IRAs: Traditional IRA and Roth IRA.

    There is no income limit to contribute to a Traditional IRA; but if you were covered by a 401k then there is an income limit to *deduct* a Traditional IRA. (Deducting them is most of the point of a Traditional IRA though. Non-deductible Traditional IRAs are pretty much only good for converting to Roth IRAs.)

    Roth IRAs are not affected by 401ks. Roth IRAs do have a (much higher) income limit for contributions in general, but it can be easily circumvented by a backdoor Roth IRA (contributing to a non-deductible Traditional IRA and then immediately converting to a Roth IRA).

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