403b precludes IRA contributions?

[Guest A-Team]

Is a Non-Erisa 403b considered an "employer retirement plan" that precludes Traditional IRA contributions and the tax deduction thereof, for a married couple earning more than $54,000?

Thanks

[mbozek]

yes- see irs pub 590.

[Appleby]

Are both spouses participants in the 403(b) plan (or any other retirement plan)? Because if only one of the two is a plan participant, the one who is not a participant may receive a full deduction if their modified adjusted gross income is less than $150,000 …the $54,000 limit would then apply only to the one who is an active participant

[Guest A-Team]

She contributes to her 403b and he contributes to some other defined contribution plan (An annuity through his union. I haven't received the specs yet.)

I read Pub. 590 prior to my original post. That's where the quoted language was pulled from. Thanks anyway, mjb.

I guess I'm wondering if there has been a ruling on my specific question. Because we all know, what they write and what they mean, can be different. Especially when distingushing between ERISA and Non-ERISA plans.

Thanks.

[mbozek]

Contributions to a 403(b) plan are considered made to an employer sponsored plan whether or not the plan is subject to ERISA since the employee gets a tax benefit, e.g deferral of the contributions.