No, just having an IRA account is not grounds for receiving the deduction of up to $5,500. Whether or not you can make a Deductible IRA Contribution is based on your Modified Adjusted Gross Income (MAGI), your Filing Status and whether or not you are covered by an Employer Sponsored Retirement Plan during the year.
If you are unmarried and you are not covered by an Employer Sponsored Retirement Plan, you can make a Deductible IRA Contribution no matter what your MAGI. [If you are Married Filing Joint and you are not covered by an Employer Sponsored Retirement Plan but your spouse is, your ability to make a Deductible IRA Contribution phases out when your joint MAGI is between $186,000-$196,000]
If you are covered by an Employer Sponsored Retirement Plan, your ability to make a Deductible IRA contribution phases out when your MAGI hits certain levels based on your filing status:
- Married Filing Joint or Qualified Widow: Phases out between $99,000-$119,000
- Single or Head of Household: Phases out between $62,000-$72,000
- Married Filing Separate: Phases out between $0 - $10,000. (Married individuals who live apart at all times during the year are treated as Single).
For more information check out the TurboTax FAQ below:
https://ttlc.intuit.com/replies/3301534
