[ptgo]

Hi there, I hope this question is relevant for this forum.

I got laid off from my employer in Aug, where we had a 401k plan, in which I have put in less than the annual IRS limit of $14k. Let's say I only put in $9k.

My new employer does not have a 401k yet. So is there anyway I can still put away another $5k pre-tax somewhere, like into a traditional IRA?

My guess is NO, because in 2005 I was already participating in a company-sponsored 401k plan? Also I am now (in 2005) contributing to a ROTH IRA, which is already being accounted into the annual $4k IRA limit, right?

Thanks in advacnce! Peter

[AtlantaTaxExpert]

PTGO:

Much depends on your annual income and filing status.

If you are single or head of household and your income is below $45K, you can open a traditional IRA even though you have a 401K, with reductions for amounts over $45K to $55K.

If you are married or a qualifying widow(er) and your income is below $65K, you can open a traditional IRA even though you have a 401K, with reductions for amounts over $65K to $75K.

You also have the option of opening a ROTH IRA, which has much higher cutoffs ($150K - 160K for married) and which, In my opinion, is a much better deal in the long run.

Full details can be found in IRS Pub 590 which can be download from www.irs.gov.

[AtlantaTaxExpert]

WHAT do you mean by "Check your 401K"?