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jayroessler11
Returning Member

IRA contributions worksheet line 12/13

I have a question about entering a 2021 IRA contribution on IRA Contributions worksheet line 12/13.

 

The question is how do determine if an IRA contribution is deductible (line 12)/non-deducible (line 13) for my wife?

 

Here is the scenario:

-- My wife has not worked for 20+ years, and she is now officially retired taking social security, but she has no withdrawals from any retirement/pension plan yet.

-- When my wife worked, she was actively participating/contributing in/to a company sponsored retirement/pension plan.

-- She still has the retirement/pension plan, but she is no longer actively participating/contributing as an employee.

 

In TurboTax Home and Business desktop edition, navigate to:

-- Personal 

-- Deductions & Credits

-- Retirement and Investments | Traditional and Roth IRA Contributions

-- Click start/update

-- Navigate through several screens of questions (filling in IRA Contributions Worksheet behind the scenes) 

 

Eventually there is a question if she is "covered by a retirement plan at work," and the answer determines if her 2021 IRA contribution is deductible (line 12)/non-deducible (line 13) .  However, since my wife no longer works for the employer, but she still has the retirement pension plan as an inactive participant no longer contributing, I don't know what the correct answer to this question is and if the 2021 is deductible/non-deductible.

 

I would appreciate guidance on how to answer this question and ultimately the deductibility of her IRA contribution.

 

Thanks.

Cheers, Jay

 

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5 Replies
DanaB27
Expert Alumni

IRA contributions worksheet line 12/13

You will answer "No" to the question if she is covered by a retirement plan at work since she didn't work in 2021 and this question applies only if you are working and have a retirement plan at work.

 

Please see IRA deduction limits for additional information.

 

For 2022 and 2021 the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:

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jayroessler11
Returning Member

IRA contributions worksheet line 12/13

Thanks much.

IRA contributions worksheet line 12/13

Along the same lines, I retired in May 31, 2021.  I no longer have a Retirement Plan given I have retired.  Is there a Partial Year Rule so I may be able to make Prorated IRA contributions with my taxes.

My W2 form from my employers has a Retirement Plan, however, has stated, retired in May 31, 2021.

Reviewed ITS Publications, but does not answer my specific question.  If so how would I be able to enter this in Turbo Tax.

Appreciate any assistance.

Ernest

 

ThomasM125
Expert Alumni

IRA contributions worksheet line 12/13

Since you had an employer sponsored retirement plan during the year, that is considered having it for the whole year. There is no partial year exemption as you suggest.

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IRA contributions worksheet line 12/13

Thank you for your assistance.  Bummer...hate owing.

 

Best Regards,

 

Ernest

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