IRA contribution deductible?

[steph2]

I am trying to figure out if an IRA contribution would be deductible for 2022. I was only able to contribute to a retirement plan through my employer until Jan. 18, 2022 (I changed jobs then). My new employer doesn't allow joining their 401k plan until you've been with the company for 1 year, so I wasn't able to join until 2023. I file married filing jointly. My husband's employer does offer a 401K plan. Since I was only eligible for 18 days of last year, would an IRA contribution be possible? When I tried plugging a potential IRA contribution into TurboTax, I was not getting a deduction, but 18 days out of one year eligibility for a retirement plan is a short window.

[leeloo]

Even one day counts. While you can always contribute to an IRA, you can't always deduct the entire amount. There are income limitations.

Is my IRA contribution deductible on my tax return?

If neither you nor your spouse is covered by a retirement plan at work, your deduction is allowed in full.

For contributions to a traditional IRA, the amount you can deduct may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels.

Roth IRA contributions aren't deductible.

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras

[Mike9241]

the rules are harsh in your situation.  if you and your spouse were not covered by an employer-sponsored retirement plan at any time during the year, contributions are fully deductible, if this is not the case then the amount of deductible IRA contributions depends on the taxpayer's filing status.

joint return  - spouse not covered. modified AGI $204,000 or less - fully deduction

over $204K less than $214K partial deduction 

#214K or more  - zero. 

[steph2]

Is there a way to claim a partial deduction, or do those 18 days in 2022 of me having an employer offered 401K plan disqualify me completely from claiming an IRA contribution deduction? My spouse did have an employer offered retirement plan and we file married filing jointly. 

From this site https://www.irs.gov/retirement-plans/ira-deduction-limits, when I click on the link behind "IRA Deduction if You ARE Covered by a Retirement Plan at Work - 2022", our AGI means I would NOT qualify:

https://www.irs.gov/retirement-plans/plan-participant-employee/2022-ira-contribution-and-deduction-l...

But from the info. on when clicking on the link behind "IRA Deduction if You Are NOT Covered by a Retirement Plan at Work - 2022", I WOULD qualify with our AGI (we are under $204K AGI):

https://www.irs.gov/retirement-plans/plan-participant-employee/2022-ira-contribution-and-deduction-l...

I am considering calling the IRS helpline to ask about my particular situation since it reads "Retirement plan at work: Your deduction may be limited" under "Traditional IRA" from that initial link above https://www.irs.gov/retirement-plans/ira-deduction-limits. That wording leads me to believe a partial deduction is possible? But I don't see how to enter that on TurboTax Deluxe.

[dmertz]

Those 18 days make you an active participant for the entire year.

[leeloo]

You are either covered (even by one day) or you are not.  If you are not covered, you're fine. If you are covered, deductions may be limited or not available at all due to AGI restrictions. 

[AnnetteB6 · Accepted solution]

The wording you referenced, 'your deduction may be limited', does indeed mean that a partial deduction may be allowed if your AGI falls within the phase-out range.  

However, given that you are considered to be covered by a retirement plan and you stated that your AGI is above the limits for taxpayer and spouse both covered by a retirement plan, there is no deduction allowed.  Unfortunately, the limitation is based on AGI being within a certain range, not on the period of time you were covered by a retirement plan.

You are still allowed to make a contribution to a Traditional IRA.  It just will not be deductible on your return.

@steph2