Can I contribute to both an IRA and a solo 401k plan?

QUESTION:

I’m looking to open a solo 401k as I am self-employed. I want to max that out and also max out an IRA for myself and my spouse. Are there any phase out limits in regards to being covered by a “workplace retirement plan” and having the solo 40k and still being able to fund the IRAs?

ANSWER: 

Good question, and while you can still contribute to an IRA even if you are also contributing to a solo 401k plan, the IRA contribution may be considered non-deductible if you modified adjusted gross income (MAGI) is over a certain limit. The MAGI changes each year but for 2017 they are outlined below. 

To learn more about the solo 401k contribution limits, VISIT HERE.