Question

Traditional IRA Contribution

Forum|Forum|5 years ago
February 26, 2021
1 reply
0 views

Me (and spouse) are both 60 without a retirement plan at work, so we qualify for max $7000 each Traditional IRA contribution. However, part of the 2020 year (Jan-Aug) I did work for an employer with a 401k retirement plan and I participated in that plan. Do I qualify for benefits of this max contribution level given I presently do not work for an employer with with a retirement plan? TurboTax only asks me about present employer and when I answer that question it indicates I qualify but want to confirm the earlier year employment doesn't change that eligibility. Thank you!

DaveF1006

According to this IRS link, you are fully covered for MFJ if you make less than $104,000, partially covered if between $104K-$124K, and not covered if your income is over $124K. Tis is for the year 2020.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

J

jon79Author

Thanks for reply Dave. The #s you reference are pertinent if working for an employer that has a retirement plan. Part of the 2020 year I did work for an employer with a retirement plan and the last part of 2020 I worked for an employer that does not have a retirement plan at work. I am trying to find out which part of the year takes precedence when determining eligibility, that earlier part when I worked for an employer with a retirement plan or the way I finished 2020, working for an employer without a retirement plan. Thanks again!