Can an IRA owner contribute to a Traditional or Roth IRA if they are covered by a retirement plan at work?
Participating in a retirement plan at work does not affect a person’s ability to contribute to an IRA, however it could affect how much of the Traditional IRA contribution is deductible.
Yes, an individual can contribute to a Traditional or Roth IRA even if they are covered by a retirement plan through their employer or their own business. Contributions made to their Traditional IRA may not be tax deductible if either the owner or their spouse participates in a workplace retirement plan. Remember, however, while Roth IRA contributions are not limited by participation in a workplace retirement plan, they may be limited if the owner’s income (along with their spouse, if filing jointly) exceeds certain levels.
For more information about Traditional IRA deductions and Roth IRA contribution limits see:
- Retirement topics – IRA Contribution Limits – Deducting your IRA contribution
- IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)