Traditional IRA Contribution Limit

[ambranum]

I retired from my employer in early 2020.  During my employment, I had 403B and an annuity retirement plan to which I regularly contributed.  After my retirement, I'm no longer able to contribute to those plans.  Currently, I'm receiving monthly distributions from those plans.

In 2021, I received a bonus (based on my partial 2020 employment) and correspondingly, I've received a 2021 W2 in which Box 13 was not checked.

My question is whether I can contribute up to the $7,000 limit to a traditional IRA and get the deduction on my 2021 taxes?  Or, am I still considered "covered" by those retirement plans, precluding me from the deduction, when combined with our AGI?

Thank you.

[DanaB27 · Accepted solution]

Yes, you can deduct the traditional IRA contributions since you were not covered by a retirement plan at work for 2021. Just make sure you had enough taxable compensation to contribute the $7,000.