IRA contribution after roll over

Forum|Forum|5 years ago
March 14, 2021
2 replies
20 views

I lost my job 1/30/2020. I did receive severance for 6 month. this pay did not include 401k contribution. for 2020 I only made contribution for the month of January. I rolled over into my current IRA and made no contributions during the year. I want to make a contribution in order to reduce my tax liability, after entering all my information i receive a message stating i cannot take the deduction on my taxes because i made too much and am still have a employer sponsored plan which i no longer have. Is there a way to remove or have it show no longer have a employer sponsored plan.

Dependents

ColeenD3

Alumni - Intuit

No. Even if you were covered for only one day, you are considered to be covered the entire year.

If you or your spouse is covered by a retirement plan at any time (even 1 day) during the year, your IRA contributions may be limited. It does not matter if the coverage was before/after the establishment of IRA.

See link below for the income limits if covered by a retirement plan at work.

If you determine (or TurboTax if you enter the IRA contributions) that you have excess contributions, withdraw them by the due date of your return, along with any of the earnings to avoid the 6% penalty.

Employer Coverage