I'm 58 and contributed $5700 to 401K at prior job in 2021. New job doesn't offer 401K. Can I contribute to IRA? If yes, how much? Turbo Tax says the deduction isn't allowed because my ER offers a retirement plan (referring to prior job). Thanks.

For tax year 2021, TurboTax does the calculation for how much you can contribute to an IRA, if any. Since you participated in a retirement plan through your employer, TurboTax has already done the calculation and you aren't eligible to contribute any money to an IRA. 

 

• Per IRS: You can contribute to a traditional or Roth IRA even if you participate in another retirement plan through your employer or business. However, you may not be able to deduct all of your traditional IRA contributions if you participated in another retirement plan at work. Roth IRA contributions might be limited if your income exceeds a certain level

However, in tax year 2022, if you're employed with a company that does not offer a retirement plan (check mark on your W-2, Box 13 Retirement Plan), you'll be able to contribute to an IRA. 

 

For 2022, 2021, 2020 and 2019, the total contributions you make each year to all of your traditional IRAs  and Roth IRAs can't be more than:

• $6,000 ($7,000 if you're age 50 or older), or
• If less, your taxable compensation for the year

 

 

 

 

Thanks,  Even though I didn't contribute the max to my prior ER's 401K, I can't contribute to an IRA to at least get me to $7000?  It seems as though I'm penalized for changing jobs...

Your original question stated that TurboTax tells you that an IRA deduction is not allowed.  That does not mean that you cannot contribute to a Traditional IRA, it just means that you will not be able to deduct your contribution and receive a tax benefit on your return for doing so.  You are still eligible to make a non-deductible (after-tax) contribution to a Traditional IRA if you wish.  

 

You can contribute up to your allowed IRA contribution limit based on your age, either $6000 or $7000 if age 50 or older.  

 

Can I contribute to both a 401(k) and an IRA?

 

@MitsyMax