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MM65
Returning Member

Traditional IRA deduction

My Wife and I are both retired and receive pension payments in retirement.  We receive information on these pensions on 1099R's .   My Wife also does some substitute teaching during the year and receives a W-2, but does not participate in any retirement program from the school.  (box 17 on W2 blank)  In Turbo, the question is asked if either of us participated in a retirement program in 2017 to determine eligibility to deduct a contribution to a traditional IRA for 2017 earnings.  My question is:  Is simply receiving pensions payments considered "participating in a retirement program"?  If not, I should be able to contribute a portion of my Wife's earned income from 2017 and take a deduction for a traditional IRA.  Could I please hear from you regarding this question??  Thanks!

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1 Reply
PaulaM
Expert Alumni

Traditional IRA deduction

The retirement plan box on the W-2 is not in box 17. It's grouped together with other boxes in box 13.

 

Receiving a 1099-R from pensions does not mean that you are participating in a retirement program. It's the box 13 mark on your wife's W-2 that designates participation or not. See IRS link Are you covered by an Employer's Retirement Plan?  Employer contributions count towards participation.

 

If your wife has the the box 13 checked, then there are IRA deduction limits that can take place. See this IRA link: IRA deduction limits if you are covered by a retirement plan at work

 

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