https://ttlc.intuit.com/community/tax-credits-deductions/discussion/ira-deduction/01/1824814#M170796 <P>My wife was laid off in 2020 but had a 401k plan at that job. &nbsp;After her layoff she kept the money in the plan. &nbsp;There are income limits when one or both spouses are covered by a 401k plan. &nbsp;Since she was laid off would she still be considered to be covered by a 401k plan for 2020?</P> Mon, 25 Jan 2021 12:26:09 GMT dosmom1234 2021-01-25T12:26:09Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/ira-deduction/01/1824814#M170796 <P>My wife was laid off in 2020 but had a 401k plan at that job. &nbsp;After her layoff she kept the money in the plan. &nbsp;There are income limits when one or both spouses are covered by a 401k plan. &nbsp;Since she was laid off would she still be considered to be covered by a 401k plan for 2020?</P> Mon, 25 Jan 2021 12:26:09 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/ira-deduction/01/1824814#M170796 dosmom1234 2021-01-25T12:26:09Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-ira-deduction/01/1824875#M170806 <P>It doesn't matter how long she was an active participant in a 401(k) plan in 2020.&nbsp; If she was an active participant in a 401(k) plan at any time in 2020, she is an active participant&nbsp;for 2020 and the deduction for your and your spouse's traditional IRA contributions for 2020 will be subject to limitation based on MAGI.&nbsp; Active participation in an employer's retirement plan is indicated on the W-2 issued by that employer by the marking of box 13 Retirement plan.</P> Mon, 25 Jan 2021 13:23:43 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-ira-deduction/01/1824875#M170806 dmertz 2021-01-25T13:23:43Z