Answer:
Yes. Anyone with earned income who is under age 70½ can open and contribute to a traditional IRA (Individual Retirement Account). The contribution limit is $5,500 for 2015 (unchanged from 2014), plus an additional “catch-up” contribution of $1,000 in 2014 and 2015 if you’re 50 or older. However, you may not be able to deduct your IRA contributions if you’re covered by a 401(k) plan at work. Whether or not you can deduct your IRA contributions depends on your filing status and annual income (adjusted gross income, or AGI). Specifically, for tax year 2015:
| If your filing status is: | Your IRA deduction is reduced if your AGI is between: | Your deduction is eliminated if your AGI is: |
| Single or head of household | $61,000-$71,000 | $71,000 or more |
| Married filing jointly or qualifying widow(er) | $98,000-$118,000 | $118,000 or more |
| Married filing separately | $0-$10,000 | $10,000 or more |
You may also qualify for a partial tax credit for amounts contributed to your traditional IRA or your 401(k) plan.
