ira contributions

[almasson]

My earned income for 2020 was just about $4100. I contributed $6495 to my 401k and was planning to contribute the max when returning from FMLA, but was not permitted to work remotely and they could not isolate me, so I filed for unemployment. I collected roughly $23,750. I'm also collecting social security. Since //i have contributed to 401k, how much can I contribute to IRA, either traditional or ROTH?

[Bsch4477]

For 2020 and later, there is no age limit on making regular contributions to traditional or Roth IRAs.  But your contribution cannot be greater than your earned income. 

[dmertz]

I assume that you are not self-employed.  Unless you are married filing jointly and your compensation is less than that of your spouse, the amount that you can contribute to an IRA for 2020 can be no more than the amount in box 1 of your 2020 Form(s) W-2, minus any amount in box 11.

[almasson]

how does the fact that i have made contributions to a 401k affect the amount i can contribute/deduct to ira either traditional or roth?

[macuser_22]

401(k) contributions have no affect on the amount that can be contributed to a IRA.

The fact that you have a 401(k) can limit or eliminate the deductible amount of a Traditional IRA contribution depending on your MAGI.

The maximum IRA contributions for 2019 is $6,000, or $7,000 if you’re age 50 or older by the end of the year; or your taxable compensation for the year which ever is less.

(Taxable compensation is generally wages that you worked for - W-2 or net self-employed income minus the deducible part of the SE tax, but can include commissions, certain alimony and separate maintenance, and nontaxable combat pay ).

See IRS Pub 590A "What is compensation" for details:
https://www.irs.gov/publications/p590a#en_US_2018_publink1000230355

See this IRS link for Traditional IRA deduction limits when covered by a retirement plan at work.

https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits

[DoninGA]

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@almasson wrote:

how does the fact that i have made contributions to a 401k affect the amount i can contribute/deduct to ira either traditional or roth?

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IRS websites for Traditional IRA contributions in 2020 if you have a retirement plan at work - 

https://www.irs.gov/retirement-plans/plan-participant-employee/2020-ira-contribution-and-deduction-l...

IRS website for Roth IRA contributions in 2020 - https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that...

[dmertz]

Elective deferrals that you make to the traditional account in your employer's 401(k) reduce the amount that would otherwise be in box 1 of your W-2 from that employer, so it seems likely that your IRA contribution will be limited by the amount in box 1 of your W-2.  This is an indirect effect that the amount you contribute to a 401(k) can have on the amount that you are eligible to contribute to an IRA.