If a taxpayer has an existing retirement plan held by a former employer (no contributions/income in 2018), is his IRA contribution deduction limited by that?

[chuckperov10]

The person has an existing 403(b) account managed by his former employer (no income from that employer in 2018, and no employer or employee contributions to it in 2018).  Does that account affect deductibility of his $5,000 contribution to an IRA?  Since he no longer works there, it seems inaccurate to say he has a retirement plan with his employer (it is his ex-employer).  Thanks for any thoughts you can provide.

[DawnC0]

If the person was a covered employee for even 1 day of 2018, the deduction could be limited.  

The IRS considers you covered by an employer's plan if you were covered at any time during the tax year. 

According to the IRS: 

"You’re covered by an employer retirement plan for a tax year if your employer (or your spouse’s employer) has a:

• Defined contribution plan (profit-sharing, 401(k), stock bonus and money purchase pension plan) and any contributions or forfeitures were allocated to your account for the plan year ending with or within the tax year;
• IRA-based plan (SEP, SARSEP or SIMPLE IRA plan) and you had an amount contributed to your IRA for the plan year that ends with or within the tax year; or
• Defined benefit plan (pension plan that pays a retirement benefit spelled out in the plan) and you are eligible to participate for the plan year ending with or within the tax year."

CLICK HERE for IRS retirement plan coverage information