IRA Deduction

[Catherine0424]

I retired in June 2021. From January 2021 til June 2021, I contributed 3468.75 to a 401K. I started working again in Oct. 2021. I'm assuming that on the deduction page...total IRA contributions for 2021, I should enter $7,000 and the additional amount, which I will contribute before April 1st, would be the difference...3531.25. Does that sound right? Thank you!

[MinhT1]

No. 

401(k) contributtions and IRA contributions are 2 different things and are subject to different lomits and rules.

For 2021, you are allowed to contribute up $19,500 to to your 401(k) plan (plus a catch up of $6,500 if you are over 50).

Your eligibility to contribute to a deductible IRA does not depend on the amount already contributed to your 401(k) plan, but on your filing status and your MAGI.

Please read this IRS document to find out if you are eligible to contribute to a deductible IRA. 

[Catherine0424]

Thanks! Got it now. I would have entered the info wrong. Both lines will be $7000.00.