If i am covered by a retirement plan at work but dont contribute can i contribute to a traditional ira?

Question

I have the opportunity to contriubute to a 403(b) via the school district that employess me. I choose not to contribute to it. Can I still contribute to a traditional IRA and take that deduction?

Answer 1

You can contribute but can't take the deduction until you start drawing the money out.  Put your money in a Roth IRA.

Answer 2

Only if your income is within the restricted guidelines for those who are covered by a retirement plan at work.  Merely not participating in it doesn't get you around the rules.

Why not participate in the 403b?  That generally would be better than most IRAs and if they make a matching contribution you are passing up on FREE money!  Some of the rules on a 403b are much more liberal than any IRA ever would be.