Contribution Limitation

[KevinMc]

If an owner is limited due to 401-k testing on his EE contribution, can he make a deductible contribution to an IRA to at least get his total contribution to the IRA limit ($6,500 in his case) even though he is over the MAGI limit on making IRA contributions while having a qualified plan at work?

[Lou S.]

No. If he's covered by a 401(k) plan he's considered covered whether or not he can make a full contribution to the 401(k). He falls under whatever rules apply to a person covered by a plan and deductions are then bases on MAGI.