Can W2 employee put money into Roth IRA now 2021, and take a deduction on 2020 Taxes?

[giogis245]

Taxpayer asked me if he can put in an amount into this Roth IRA now (2021) and I take a deduction on 2020 taxes?  He says he's done it for years, it reduces his income now.  W2 says nothing!  

[Lion EA]

A Roth IRA contribution is not a tax deduction. Does he qualify to make a deductible Traditional IRA contribution?

[Lee B]

Hopefully, your client just got traditional IRA sand the Roth IRA confused.

[giogis245]

I made a mistake and put Roth but it is a traditional IRA. 

[Lion EA]

https://www.irs.gov/retirement-plans/ira-deduction-limits

Check to make sure your client qualifies for a deductible Traditional IRA. Also, see if the Saver's Credit is available?

[Catherine]

But assuming he meets the income and no-employer-plan requirements, he has until he files, or the due date (now May 17) whichever is first.  So if he already filed, he's out of luck.

[Abby Normal]

I have some older clients with small W2's and low income. They make Roth IRA contributions just to get the retirement savers credit, knowing that they can take the Roth money whenever needed or leave it for their beneficiaries.

[Lee B]

36 minutes ago, Catherine said:

But assuming he meets the income and no-employer-plan requirements, he has until he files, or the due date (now May 17) whichever is first.  So if he already filed, he's out of luck.

Actually, I don' think the IRS has issued issued guidance on this yet. Hold your breath, film at 11.

[Slippery Pencil]

1 hour ago, Catherine said:

until he files, or the due date (now May 17) whichever is first.  So if he already filed, he's out of luck.

No requirement to fund the ira before filing.  You can file in February, receive your refund in March, then use the refund to fund the ira.