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bkreis84
New Member

Eligibility to deduct Traditional IRA contributions (Employer Sponsored?)

I switched jobs in April of 2016 (I contributed to an employer matched 401k with the old employer) and was not able to contribute to my new company's 401k until 8/2016 (no match for all of 2016). My wife has a 403b with a 3.5% employer contribution but she is not able to contribute to this herself.  I contributed $2,100 to her traditional IRA but am not sure, based on what I have read, whether we can deduct the $2,100. Are we considered to have an employer sponsored plan for the year? She is eligible to contribute $5,500, the question is about whether it is deductible or not.
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Accepted Solutions
dmertz
Level 15

Eligibility to deduct Traditional IRA contributions (Employer Sponsored?)

You are both covered by a retirement plan at work for 2016.  The amount of a traditional IRA contribution you can deduct depends on your modified AGI:

https://www.irs.gov/publications/p590a/ch01.html#en_US_2016_publink1000230472

TurboTax will automatically calculate the deductible amounts.

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1 Reply
dmertz
Level 15

Eligibility to deduct Traditional IRA contributions (Employer Sponsored?)

You are both covered by a retirement plan at work for 2016.  The amount of a traditional IRA contribution you can deduct depends on your modified AGI:

https://www.irs.gov/publications/p590a/ch01.html#en_US_2016_publink1000230472

TurboTax will automatically calculate the deductible amounts.

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