Hello,
I was participating in a company sponsored 401K but lost my job in March so only contributed a small amount. Can I add funds to an individual IRA to reduce taxable income?
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You are considered as covered by a retirement plan by work, even if you only worked there part of the year. Your 2020 form W-2 should have a check mark in box 13 - Retirement plan.
As a covered individual, your eligibility to contribute to a Traditional IRA depends on your filing status and your Modified Adjusted Gross Income (MAGI).
You can check your eligibility by reading this IRS document.
Because you were an active participant in a workplace retirement plan in 2020, whether or not you are eligible to deduct a traditional IRA contribution depends on your filing status and modified AGI for the purpose of an IRA deduction:
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