Can you have both a 401K and an IRA?

Yes. In fact, it is pretty common to have both a 401k and an IRA. Note that if you do have both, you may not be able to enjoy the tax benefits on both the 401k and IRA in the same year. And depending on your income, if have a 401k at work, you may not be able to get a deduction for your traditional IRA.

Here is a chart from the IRS to help you determine how your modified adjusted gross income impacts the amount of your deduction.