Roth IRAs contributions or distributions usually do not impact your return.
You may qualify for the IRA deduction if you made a regular contribution (added money that was not a rollover contribution) to a traditional IRA. A rollover is when you transfer funds from one IRA to another, or from a tax-deferred plan, such as a 401(k) plan, to an IRA.
- You're under age 70 1/2 at the end of the year.
- You (or your spouse, if filing a joint return) have earned income, such as salary or self-employment earnings.
- You can deduct all of your contribution if you (and your spouse, if filing a joint return) are not covered by a retirement plan at work.
- If you (or your spouse, if filing a joint return) are covered by a retirement plan at work, you might be able to deduct all of your contribution, only part of it, or none of it, depending on your modified adjusted gross income (MAGI) and your filing status.