How do i know if i can contribute to an IRA, Roth IRA or not based on last years income?

[DoninGA · Accepted solution]

Any contribution you make to an IRA, Traditional or Roth, after May 17, 2021 is based on your 2021 taxable compensation, not 2020.

IRS website for deduction limits - https://www.irs.gov/retirement-plans/ira-deduction-limits

IRS website for contribution limits - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li...

[Hal_Al]

Although there is a provision, under covid rules,  to base your Earned Income Credit (for 2020) on the previous year's earned income; I'm not aware of any similar provision for IRA contributions.  

Your current year contribution must be based on your current year "compensation" (generally, your earned income).