Planning for retirement often extends beyond workplace plans. Can you contribute to an IRA while participating in an employer-sponsored plan?  Yes, you can.  The thing to watch out for is the deductability of those contributions.

Traditional IRA Contributions

A Traditional IRA allows pre-tax contributions, potentially reducing taxable income and deferring taxes until retirement withdrawal. Participation in an employer-sponsored plan can affect deductibility.

IRS rules limit deductions based on income and filing status. Deductibility phases out if MAGI exceeds thresholds for singles or married couples filing jointly.

Exploring Roth IRA Contributions

Roth IRAs provide tax-free growth and qualified withdrawals in retirement. Contributions are after-tax, offering flexibility and tax advantages.

Income limits apply to Roth IRA contributions. The IRS sets maximum contributions based on filing status and income for 2024.

Exceeding income limits restricts direct Roth IRA contributions. Strategies like the Backdoor Roth IRA offer alternatives.

Informed Retirement Planning

Navigating retirement planning entails considering income, taxes, and long-term goals. Workplace plans are vital, but IRAs supplement savings with added benefits.

Consult a financial advisor to assess your situation and determine the best strategy. Understand IRA rules and limitations for optimized retirement savings.

In conclusion, contributing to an IRA alongside a workplace plan is possible, but tax implications and limits vary. Explore strategies to maximize retirement savings.  This article is for informational purposes only and is not intended as tax or financial advice.  Please contact us with all your self-directed questions at