Deducting IRA Contribution

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I contributed to my 401K for 9 months last year, until I was eligible to participate in my employers 401K. When I started participating in the 401K I stopped contributions to the IRA. My income level last year was more than $75k. Can I deduct the IRA contributions since they were done prior to my eligibility in the 401K?

KatrinaB48

Alumni - Intuit

It depends on your filing status and modified adjusted gross income. According to the IRS, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:

More than $103,000 but less than $123,000 for a married couple filing a joint return or a qualifying widow(er),
More than $64,000 but less than $74,000 for a single individual or head of household, or
Less than $10,000 for a married individual filing a separate return.

The above income limit also limits your IRA contribution deduction. Please view this IRS link for more information.

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dmertz

Level 15

It doesn't matter that the 2019 IRA contributions were made before your participation in the 401(k) in 2019. Filing single with a MAGI over $75,000 means that your IRA contribution is not deductible.