Catch-up contribution of $ 500 for 2002

[alexa]

If one is not eligible to make deductible IRA contributions due to 401(k) plan active participation rules, can one still make a $ 500 catch-up contribution to a deductible IRA? to a Roth IRA?

[Appleby]

Absolutely… your ‘active participant status’ does not affect the amount your may contribute to a Roth or Traditional IRA. You may already know that in order for you to make a catch-up contribution, you must first contribute the regular amount, i.e. $3,000. Any amount in excess of the $3,000 (up to $3,500) will be a catch-up contribution- assuming you are at least age 50 by the end of the year for which the contribution is being made.

If you decide to contribute to a Roth IRA, make sure you do not exceed the income limit ( meet the eligibility requirements)

[BPickerCPA]

To clarify, if your $3,000 contribution to a traditional IRA is not deductible, the $500 catch up contribution will also not be deductible. You can always contribute to a Roth IRA instead, IF your income is within the limits.

[bzorc]

So, to paraphrase my situation as it applies here, if a greater than age 50 individual makes a $3,500 IRA contribution, up to $3,000 is deductible and the other $500 would become non-deductible. This is correct, right?

Never mind. Reading the instructions to the 2002 Form 1040 clearly shows that an age 50 or older person can deduct the full $3,500 IRA contribution.