IRA Contributions

[bjhillcal]

I had two employers for 2020.  The first employer was for January and February, and they had a retirement plan.  The second was for the ten remaining months of the year, and they did NOT have a retirement plan.   I contributed to an IRA, but TurboTax is claiming I don't get a tax break because I had a retirement plan through my employer.  How do I get it to recognize the second employer who did NOT have a retirement plan and hence my contributions should be deductible?

[DavidD66 · Accepted solution]

You don't.  The fact that you worked for an employer with a 401(k) for part the year means that you were covered by a retirement plan at work for the year.

[bjhillcal]

Thank you!  I was afraid that might be the answer, but couldn't nail it down anywhere.  Timing is everything -- too bad I couldn't have left my old job at the end of 2019, then I would have a full year at my new job where my IRA contribution would then be deductible.  Still, I would contribute to my IRA regardless.  I can now file knowing I checked things out first.

[fanfare]

depending on your income it may be partly deductible or not at all deductible.

You will find Form 8606 attached to your tax return.