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From: ask@cbrma.UUCP (A.S.Kamlet)
Newsgroups: net.taxes,net.invest
Subject: Re: Marginal Tax Rates and the Senate Tax Bill
Message-ID: <4837@cbrma.UUCP>
Date: Thu, 31-Jul-86 18:50:32 EDT
Article-I.D.: cbrma.4837
Posted: Thu Jul 31 18:50:32 1986
Date-Received: Sat, 2-Aug-86 09:24:03 EDT
References: <5314@sun.uucp> <2352@cbosgd.UUCP> <2937@teddy.UUCP>
Reply-To: ask@cbrma.UUCP (A.S.Kamlet(Art))
Distribution: na
Organization: AT&T Bell Laboratories, Columbus
Lines: 18
Xref: watmath net.taxes:1255 net.invest:1623

In article <2937@teddy.UUCP> kdj@teddy.UUCP (Kenneth D. Jordan) writes:
>
>	The statement used to be: 
>	
>	If you contributed $$ to a 401k plan or your company contributed $$ 
>	towards a pension plan for you then you could not contribute towards 
>	an IRA.
>
>	Is this still true or have they become wiser ?

This is not the current law.  Today, you can contribute to both an
IRA and a 401K.    This may change under the new tax bill.  One version
decreases the amount you can contribute to a 401K by the amount contributed
to an IRA.  And there's a version (same version?) that reduces the 401K
from MIN ( $30,000 , 15% )  to MIN ( $7,000 , ?% ).   A 401K is only
offered through a cooperating employer, who may set lower limits.
-- 
Art Kamlet   AT&T Bell Laboratories  Columbus  {cbosgd | ihnp4}!cbrma!ask