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LEARN MORE ABOUT: IRA Accounts

INVESTING IN A GOLD IRA: Gold IRA Account

INVESTING IN A SILVER IRA: Silver IRA Account

REVEALED: Best Gold Backed IRA

Yes, you can still make contributions to an Individual retirement account (IRA) even if you are covered by a retirement plan at your place of employment. However, there are some limitations and rules that you need to be aware of.

If you are covered by a retirement plan at work, such as a 401(k) or a pension plan, your ability to deduct traditional IRA contributions on your taxes may be limited based on your income level. The Internal Revenue Service (IRS) sets income limits for individuals who are covered by a retirement plan at work and wish to contribute to a traditional IRA. These limits are adjusted annually and can be found on the IRS website.

If you are covered by a retirement plan at work and your income exceeds the limit set by the IRS, your ability to deduct traditional IRA contributions may be phased out or completely eliminated. In this case, you may still make non-deductible contributions to a traditional IRA, but they will not be tax-deductible.

Alternatively, you may also consider contributing to a Roth IRA. Roth IRAs have different tax advantages than traditional IRAs, and contributions are made on an after-tax basis. While there are income limits for contributing to a Roth IRA, they are generally higher than those for traditional IRAs. It is important to consult with a financial advisor or tax professional to determine the best course of action based on your individual financial situation.

Regardless of whether you choose to contribute to a traditional or Roth IRA, it is important to start saving for retirement as early as possible. Even if you are covered by a retirement plan at work, having an IRA can provide an additional source of retirement income and offer tax advantages. Plus, the earlier you start saving, the more time your investments have to grow.

In conclusion, yes, you can make contributions to an IRA even if you are covered by a retirement plan at work. However, there are limitations and rules that you need to follow. It is important to understand these rules and consult with a financial advisor to determine the best retirement savings strategy for your individual situation.