Ira Contribution

[gman]

Individual Has 900.00 W/h From Wages And Employer Puts That Amount
Into Simple Ira. The Employer Also Adds 600.00 To The Simple.

What Amount Can The Individual Put Into Traditional Ira--assuming
All Other Requirements Are Met. $4,000. Or Only 2500.

Thanks

[Bees Knees]

SIMPLE IRA contributions do not affect the amount that can be contributed to an IRA. The taxpayer can do a full IRA contribution even if the taxpayer maxed out on the SIMPLE. However, participating in the SIMPLE IRA does make the person an active participant in an employer retirement plan for purposes of the phase out rules for deductible IRA contributions.