I have a retirement plan from my state. If I contribute in a traditional IRA, do I still get deduction benefits on my taxes?
My employer plan is not 401k or IRA, it is a crappy one with the state which they deduct monthly fee from it!
- StephenWeinsteinLv 73 weeks ago
Maybe. If you are covered by a retirement plan at work (this applies to pretty much any employer retirement plan, including a 401K, not just the state plan), and your income is more than a certain amount (see https://www.irs.gov/retirement-plans/plan-particip... for the amount), then you cannot deduct your IRA contributions. If you make less than another amount (see same link), you can. If it's between those amounts, then you can deduct some, but not as much.
- A HunchLv 73 weeks ago
Your work based retirement plan is likely a 457 plan which is almost identical to a 401K except you are allowed to contribute a higher amount each year.
Yes, you can contribute to both an IRA and 457/403B/401K