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Yes. Anyone with earned income who is under age 70½ can open and contribute to a traditional IRA. The contribution limit is $5,500 for 2016 (unchanged from 2015), plus an additional "catch-up" contribution of $1,000 in 2015 and 2016 if you're 50 or older. However, you may not be able to deduct your IRA contributions if you're covered by a 401(k) plan at work. Whether or not you can deduct your IRA contributions depends on your filing status and annual income (adjusted gross income, or AGI). Specifically, for tax year 2016:
|If your filing status is:||Your IRA deduction is reduced if your AGI is between:||Your deduction is eliminated if your AGI is:|
|Single or head of household||$61,000-$71,000||$71,000 or more|
|Married filing jointly or qualifying widow(er)||$98,000-$118,000||$118,000 or more|
|Married filing separately||$0-$10,000||$10,000 or more|
Special rules apply if your spouse is covered by a plan at work, but you are not. You may also qualify for a partial tax credit for amounts contributed to your traditional IRA or your 401(k) plan.