Can I contribute to a traditional or Roth IRA if I’m covered by a retirement plan at work?
Traditional IRAs Yes, you can contribute to a traditional IRA even if you participate in an employer-sponsored retirement plan. For 2010 and 2011, you can contribute up to $5,000 annually ($6,000 if you are 50 or older by the end of the year). However, if you or your spouse is covered by an employer retirement plan, this will affect how much, if any, of your contribution is tax-deductible. See Publication 590, Individual Retirement Arrangements (IRAs), for the rules on who can contribute, what compensation to use, and when and how to make IRA contributions. Roth IRAs You can also contribute to a Roth IRA even if you participate in an employer-sponsored retirement plan. You can contribute up to $5,000 ($6,000 if you are 50 or older by the end of the year), but the amount you can contribute may be reduced or even eliminated depending on your modified adjusted gross income (MAGI) and your filing status. For example, for 2010, you can make the maximum contribution to a Roth IRA if your fil
