tax deductible IRA

[tianshuibiao]

Hello

I lost my job in the middle of the year with 401K contribution not even half of the limit. I did get a severance pay but wonder if I can make a max contribution to a traditional IRA so I can get tax deduction. Thanks

[DoninGA]

Depending on your Modified AGI and filing status you may be able to contribute to an IRA even if you were covered by a retirement plan at work.

Go to this IRS website for eligibility - https://www.irs.gov/retirement-plans/2023-ira-deduction-limits-effect-of-modified-agi-on-deduction-i...

[Opus 17]

Unfortunately, even if you lost your job part-way through the year, you are considered "covered" by a workplace plan, and your IRA limits are the ones used by someone who is covered by a workplace plan.