Open IRA account?

del3684- — Tue, 04 Jun 2019 20:48:00 GMT

Want to find out if we can open an IRA account to reduce our tax burden? My wife was covered by a retirement plan at work for all of 2016. I was retired for most of 2016 and went back to work part time in Sep of 2016. For the months of Sep to Dec 2016 I was also covered by a retirement plan. Will that 4 month period that I was I was also covered by a retirement plan exclude us from using the IRA account to help reduce our tax burden?

Yes- It might. If you have the retirement plan checkbox o...

ChristinaS — Tue, 04 Jun 2019 20:48:01 GMT

Yes- It might.

If you have the retirement plan checkbox on a W2, that impacts the entire year. You don't separate times of the year worked for this purpose, so your ability to make a deductible contribution will be based on both of you having retirement plans in 2016.

You can receive a full deduction if your MAGI is no more than $98,000.

https://www.irs.gov/retirement-plans/plan-participant-employee/2016-ira-contribution-and-deduction-l...

topic Open IRA account? in Retirement tax questions

Open IRA account?

Yes- It might. If you have the retirement plan checkbox o...