topic IRA Contributions in Retirement tax questions

IRA Contributions

bjhillcal — Tue, 13 Apr 2021 20:56:53 GMT

I had two employers for 2020. The first employer was for January and February, and they had a retirement plan. The second was for the ten remaining months of the year, and they did NOT have a retirement plan. I contributed to an IRA, but TurboTax is claiming I don't get a tax break because I had a retirement plan through my employer. How do I get it to recognize the second employer who did NOT have a retirement plan and hence my contributions should be deductible?

Re: IRA Contributions

DavidD66 — Tue, 13 Apr 2021 22:00:41 GMT

You don't. The fact that you worked for an employer with a 401(k) for part the year means that you were covered by a retirement plan at work for the year.

Re: IRA Contributions

bjhillcal — Tue, 13 Apr 2021 22:48:39 GMT

Thank you! I was afraid that might be the answer, but couldn't nail it down anywhere. Timing is everything -- too bad I couldn't have left my old job at the end of 2019, then I would have a full year at my new job where my IRA contribution would then be deductible. Still, I would contribute to my IRA regardless. I can now file knowing I checked things out first.

Re: IRA Contributions

fanfare — Wed, 14 Apr 2021 02:00:59 GMT

depending on your income it may be partly deductible or not at all deductible.

You will find Form 8606 attached to your tax return.