If I was laid off in Nov. could I take the $4,000 IRA Deduction without regard to the AGI limits?

Question

Initially I was under the impression that since I was no longer covered by an employer plan I could take the full deduction, regardless of AGI.
Publication 590 has this exception that steered me in this direction: "If you receive retirement benefits from a previous employer’s plan, you are not covered by that plan."
The way I read this, that means I was not covered during the year in question and therefore able to make the deduction.
Am I misreading this?

Answer 1

No.

If you were covered by a retirement plan for even 1 day in 2006 you are not eligible for a deductible IRA if you are over the AGI limits.

The IRS has an easy way to check. If the "Retirement Plan" box on your W2 is checked, you are considered covered for all of 2006.