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Level 1
posted Feb 24, 2025 12:39:34 PM

Traditional IRA

I'm currently retired and drawing social security and a pension.  I also have earned income (1099NEC) from a consutling business.  Does receiving retirement benefits constitute being covered by another retirement plan thereby limiting my ability to contribute to a traditional IRA?

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1 Replies
Employee Tax Expert
Feb 24, 2025 12:45:09 PM

No, receiving retirement benefits does not constitute being covered by another retirement plan for purposes of determining if you are eligible for a Traditional IRA contribution.  

Covered by a retirement plan in this case means having the option to contribute to one through your employer.