IRA Question - No employer retirement plan

[JayGatsby]

Hello -

How much money can I put in my traditional IRA (and count as a deduction) if I do NOT have a retirement plan with my employer?

All I can seem to find is that the max you can deduct is $5500 if you have a 401k with your employer. So what if I don't have a 401k with my employer? I want to hold on to my money and not give it to the government, if possible!

[Bob W]

Don't know,  but here are some things to consider depending on your situation.

1.  Just investing in low cost index funds
2.  HSAs
3.  Simple or SEP plans (depending on your situation)
4.  Talk to your employer about setting up a 401K

The vehicle you invest through is important, but don't overthink it.   Saving and investing tons is key.  Avoiding taxes is very nice as well.

[seattlecyclone]

The only thing affected by an employer plan is at what income level the IRA deduction starts to phase out. If you have a low enough income to get the full deduction, it maxes out at $5,500 regardless of whether or not you have a retirement plan at work.

[MDM]

See http://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits for the "official" version.

[Philociraptor]

$5,500 if you are single or married and neither has a 401k, phase out starts at $181k if married and one of you is covered.

[wtjbatman]

Hello -

How much money can I put in my traditional IRA (and count as a deduction) if I do NOT have a retirement plan with my employer?

Up to $5500 if you're 49 or younger*
Up to $6500 if you're 50 or older*

*Ignores income phaseouts, see MDM's link for details