Is union defined contribution plan considered a qualified retirement plan? In other words, if I have a union pension can I deduct contributions to an IRA account?

[IreneS · Accepted solution]

Yes -  you are considered covered by an employer retirement plan.  If you are covered, Box 13, "Retirement Plan" on your W-2 should be marked.

Even though you are covered by a retirement plan, you can still contribute to a traditional IRA and get a deduction, it just may be reduced.  If you are--

Single, and your modified adjusted gross income is:

• $61,000 or less - You get the full deduction
• more than $618,000 but less than 71,000 - partial deduction
• $71,000 or more - no deduction

Married filing joint return, and your modified adjusted gross income is:

• $98,000 or less - You get the full deduction
• more than $98,000 but less than $118,000 - partial deduction
• $118,000 or more - no deduction

Married filing separately*, and your modified adjusted gross income is:

• less than $10,000 - partial deduction
• $10,000 or more - no deduction

*Married individuals filing separately who live apart at all times during the year are treated as single.

[NOTE:  There is no impact on Roth IRA contributions if you are covered by an employer retirement plan.  These contributions, however, are not deductible on your return.]

For more details on IRAs, please see the following IRS Publications:

• Publication 590-A - Contributions to Individual Retirement Arrangements (IRAs)
• Publication 590-B - Distributions from Individual Retirement Arrangements (IRAs)