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My employer does not offer a retirement plan. I made 95,000 in 2021. Can I contribute to an IRA and receive a Tax deduction for 2021 taxes?

 
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2 Replies

My employer does not offer a retirement plan. I made 95,000 in 2021. Can I contribute to an IRA and receive a Tax deduction for 2021 taxes?

Yes if done before April 18, 2022.

 

The maximum IRA contributions for 2020 and 2021 is $6,000, or $7,000 if you’re age 50 or older by the end of the year; or your taxable compensation for the year which ever is less.

(Taxable compensation is generally wages that you worked for - W-2 or net self-employed income minus the deductible part of the SE tax, but can include commissions, certain alimony and separate maintenance, and nontaxable combat pay ).

See IRS Pub 590A "What is compensation" for details:
https://www.irs.gov/publications/p590a#en_US_2020_publink1000230355


**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
DavidD66
Expert Alumni

My employer does not offer a retirement plan. I made 95,000 in 2021. Can I contribute to an IRA and receive a Tax deduction for 2021 taxes?

If you are single and your employer does not offer a retirement plan, you can make a deductible contribution regardless of your income.  If you are married filing joint, and your spouse participates in a retirement plan at work:  You get a full deduction with MAGI less than $198,000 and a Partial deduction with MAGI of $198,000 - 208,000.  

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