I'm thinking since the severance shows up as 2018 income on the w2 and since I was not covered by a retirement plan in 2018 (and the w2 reflects this), and I'm 58 I should be able to do an IRA.
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It depends.
If you are filing as Single, because you have taxable wages reported on Form W-2 and the Retirement Plan Box was not checked, you can make a deductible IRA contribution of $6,500.
However, if you are Married Filing Jointly, your ability to make a Deductible IRA Contribution phases out between a Modified Adjusted Gross Income (MAGI) of $189,000-$199,000 if your Spouse is covered by an Employer Sponsored Retirement Plan. If your spouse is not covered, then there are no MAGI limits imposed so your IRA Contribution would be deductible.
One final note, your ability to make a Deductible IRA Contribution if using the Married Filing Separately Status is completely phased out when your MAGI reaches $10,000.
Please comment below if you need further clarification.
It depends.
If you are filing as Single, because you have taxable wages reported on Form W-2 and the Retirement Plan Box was not checked, you can make a deductible IRA contribution of $6,500.
However, if you are Married Filing Jointly, your ability to make a Deductible IRA Contribution phases out between a Modified Adjusted Gross Income (MAGI) of $189,000-$199,000 if your Spouse is covered by an Employer Sponsored Retirement Plan. If your spouse is not covered, then there are no MAGI limits imposed so your IRA Contribution would be deductible.
One final note, your ability to make a Deductible IRA Contribution if using the Married Filing Separately Status is completely phased out when your MAGI reaches $10,000.
Please comment below if you need further clarification.
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