IRA deduction after retiring from career that had 401k

[aws316]

After retiring from career that was covered by a retirement plan and starting periodic withdrawals from the plan, if you get another job in a future year that is not covered by a retirement plan, can you make ira contributions and take a full deduction?

[MichaelG81]

It depends, generally you can deduct. In fact, the usual deduction is 6,000 but if you are aged 50 or older you can currently contribute and deduct up to 7,000 of earned income into a traditional IRA if you meet the income/other limits for 2022 see this article for qualifications.

For 2023, the total contributions you make each year to all of your traditional IRAs  and Roth IRAs can't be more than:

• $6,500 ($7,500 if you're age 50 or older), or
• If less, your taxable compensation for the year

For 2022, 2021, 2020 and 2019, the total contributions you make each year to all of your traditional IRAs  and Roth IRAs can't be more than:

• $6,000 ($7,000 if you're age 50 or older), or
• If less, your taxable compensation for the year

Traditional and Roth IRAs allow you to save money for retirement.

Who can contribute?

Traditional IRA

You can contribute if you (or your spouse if filing jointly) have taxable compensation. Prior to January 1, 2020, you were unable to contribute if you were age 70½ or older.

Roth IRA

You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see and 2022 and 2023 limits).

[aws316]

Thanks Michael. Let me elaborate on it some more. I was wondering if it's allowed to work at another job that is not covered by a retirement plan, and make and deduct ira contributions without income limits, even though I'm making withdrawals from a 401k from a job that was covered by a retirement plan. 

[DanaB27]

Yes, you can take another job and your traditional IRA contributions will be fully deductible if you don't have a retirement plan at the new job. Please see Are You Covered by an Employer's Retirement Plan? for additional details.

@aws316