Traditional IRA Contribution Eligibility

[CJB-1959]

My wife retired in June so she is no longer covered by a retirement plan. Can she make a deductible 2024 Tax Contribution since she is now retired and no longer covered by a Retirement Plan?

[CJB-1959]

I meant to say is she eligible to make a deductible IRA contribution since she retired in June 2024.

[SusanY1]

Maybe.  It will depend on the amount of income that she earned through the year.  For purposes of determining if an IRA contribution is deductible, "covered by a retirement plan" means covered during any part of the year, if contributions were allocated to the plan.  

So, she will likely have to meet the income rules for someone who is covered by a retirement plan, even though she is not presently covered (assuming she had a plan in the initial part of the year when she was working.)

The phase out income amounts can be found for both covered and non-covered taxpayers HERE.