Traditional IRA Contribution

[Zebra5]

Hello, 

i have a question about making a contribution towards traditional IRA for tax year 2021. So in 2021 i had two jobs, hence, received two w-2s. The job which i left during the year gave me a w2 where box#13 was checked with retirement plan and the second job's w2 did not had box 13 checked. Does this means i am eligible to make an IRA contribution as i was not covered by a retirement plan at the end of the year?

In first job i participated and made contributions towards a retirement plan (457b) and for second job i was not eligible to participate in retirement plan as there was a 90 day waiting period.

[PattiF]

It depends, you may be eligible to make a deductible contribution to your Traditional IRA for 2021. The amount that you can deduct depends on your filing status and modified gross income.

This TurboTax help article explains the income levels that determine how much of your contribution is deductible.

[Zebra5]

Thank you PattiF for your response. Please note my question is on the iRA deduction worksheet do i check the box that says covered by retirement plan at work ? 

Also, my MAGI is above phase out range for my filling status.

[MinhT1 · Accepted solution]

Whether you are covered by a retirement at work depends on whether box 13 on any one of your forms W-2 is checked. There is no box for you to manually check on the worksheet.

If you were covered by a retirement plan in your job at the start of the year, you are considered as covered for the full tax year. It does not matter whether you had or did not have a retirement plan at your other jobs.

This IRS document will let you find out how much Traditional IRA you can deduct on your tax return.

[cherylgrimes1]

Hi @MinhT1 I am not sure how to start a question on TT unless I piggyback on another question. I appreciate your help, if you can. 

If my Mom passed in Sept of 2021, and if I took my portion of her IRA, without immediately rolling into another, but I am now   taking one out (FOR 2021!) to help with what I owe, how do I answer the question of what I did with that money? 

The options are: I moved the money to another retirement account or I did something else with it. If I moved it, I have to answer if I did a combination of rolling it over, converting, or cashing out the money. I did cash it out, but now am opening an IRA with some of the funds. I am just wondering if the delay will make it ineligible to make this entry.