topic IRA Deduction in Deductions & credits

IRA Deduction

ljm06320 — Fri, 05 Mar 2021 19:02:50 GMT

My wife and I are both retired for all of 2020 and over 50. My wife collected some income from an IRA and I was collecting money from a pension plan and I was also getting semi-monthly checks from my former employer as part of a separation plan. The semi-monthly checks were reported on a W-2 form for 2020 and box 13 on the W-2 was not checked, indicating that I was not covered by a retirement plan at work. Turbo Tax indicates that I can take a maximum deduction of $7,000 towards a traditional IRA. My financial advisor didn't think I was entitled to take the IRA deduction however everything I have read in the Turbo Tax HELP topics and on the Turbo Tax IRA and Earned Income worksheets says I can. We are filing as Married Filing Jointly. I'm just looking for validation that I can take this IRA deduction.

Re: IRA Deduction

Critter-3 — Fri, 05 Mar 2021 19:05:20 GMT

If neither of you are in a retirement plan at work (as indicated on the W-2 box 13) then you can make an IRA contribution because you still receive wages on a W-2 form ... the program is correct.

Re: IRA Deduction

ljm06320 — Tue, 09 Mar 2021 14:20:15 GMT

thanks!...Can the IRA deduction go into an existing rollover IRA or does it have to be a new traditional IRA. I know it can't be a Roth.