I retired in July so did not have a IRA plan for half year. Does the "have a plan at work" limit to IRA deduction apply if I had a plan even for part of the year?

[woodyguth3]

I was hoping that at least some of my contribution would be tax deductible since I did not have a plan at work for half of the year. Thank you.

[ChristinaS · Accepted solution]

Yes, it does limit you. This rule is not prorated for months of the year. If you had a plan for even a week, that could impact your eligibility for an entire year. Its simple like that, even arguably unfair like that.

The deduction you can take for contributions made to your traditional IRA depends on whether you or your spouse was covered for any part of the year by an employer retirement plan.

https://www.irs.gov/publications/p590a/ch01.html#en_US_2016_publink1000230449