I retired 4/2016 but the software is saying I cannot deduct my IRA contribution because the box on my w2 is checked. How can I claim part of my IRA contribution?

[meklun]

I only worked for 4 months but because the box is checked on my W2 that says I had a work retirement program Turbo Tax will not let me deduct any of my IRA contribution.  Can I deduct a pro rated amount?  Can I deduct it all?

[DianeW · Accepted solution]

No.  If you were able to participate in an employer plan at any time during the year it is considered for the whole year.

Covered by an employer retirement plan. If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited.

Modified AGI limit for traditional IRA contributions. For 2016, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $98,000 but less than $118,000 for a married couple filing a joint return or a qualifying widow(er), More than $61,000 but less than $71,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return.

For more information you can use this hyperlink if you like:  Publication 590-A Contributions to IRAs