I have a question about entering a 2021 IRA contribution on IRA Contributions worksheet line 12/13.
The question is how do determine if an IRA contribution is deductible (line 12)/non-deducible (line 13) for my wife?
Here is the scenario:
-- My wife has not worked for 20+ years, and she is now officially retired taking social security, but she has no withdrawals from any retirement/pension plan yet.
-- When my wife worked, she was actively participating/contributing in/to a company sponsored retirement/pension plan.
-- She still has the retirement/pension plan, but she is no longer actively participating/contributing as an employee.
In TurboTax Home and Business desktop edition, navigate to:
-- Personal
-- Deductions & Credits
-- Retirement and Investments | Traditional and Roth IRA Contributions
-- Click start/update
-- Navigate through several screens of questions (filling in IRA Contributions Worksheet behind the scenes)
Eventually there is a question if she is "covered by a retirement plan at work," and the answer determines if her 2021 IRA contribution is deductible (line 12)/non-deducible (line 13) . However, since my wife no longer works for the employer, but she still has the retirement pension plan as an inactive participant no longer contributing, I don't know what the correct answer to this question is and if the 2021 is deductible/non-deductible.
I would appreciate guidance on how to answer this question and ultimately the deductibility of her IRA contribution.
Thanks.
Cheers, Jay
