If you were covered by a retirement plan at work, even for 1 day at any employer, you should mark Yes to that question. Whether or not it affects your deductions depends on your modified adjusted gross income. For 2020, the total contributions you make each year to all of your traditional IRAs can't be more than:
- $6,000 ($7,000 if you're age 50 or older), or
- If less, your taxable compensation for the year
Your traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement plan at work (at any point during 2020) and your income exceeds certain levels.
If you're covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. If it is less than $104,000 and you are Married Filing Jointly, you can take the full deductions.
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