If you particpate in an employer sponsored retirement plan and have a personal IRA, how much must one reduce the allowed contributions to the IRA?

[Guest Enda80]

If one participates in an employer sponsored retirement plan and have a personal IRA, how much must one prorate or reduce the contributions that one makes to the personal IRA? Does the phaseout occur if one has a certain level of income?

[Guest Scott Foreman]

You may want to check out this publication from the IRS (Publication 590). Your question is covered starting with the section entitled Limit if Covered by Employer Plan. Table 1-2 should have the numbers you are looking for.

IRS Publication 590

Scott