It appears you are eligible by the fact that you are covered by the Tennessee Consolidated Retirement System. It is not clear why your employer did not check box 13 on your W-2 as they probably should have. The TCRS is a defined benefit plan and according to the IRS you are eligible to participate in such plan whether you were enrolled or not. IRS Publication 590-A provides the following information about defined benefit plans and eligibility:
Defined benefit plan. If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. This rule applies even if you:
- Declined to participate in the plan,
- Didn’t make a required contribution, or
- Didn’t perform the minimum service required to accrue a benefit for the year.
A defined benefit plan is any plan that isn’t a defined contribution plan. In a defined benefit plan, the level of benefits to be provided to each participant is spelled out in the plan. The plan administrator figures the amount needed to provide those benefits and those amounts are contributed to the plan. Defined benefit plans include pension plans and annuity plans.
Thus, you are eligible by virtue of the fact that you are an employee of a Tennessee municipality that offers a defined benefit plan. It does not appear that you have the option to decline to participate. However, even if you could decline to participate, you would still be considered eligible according to IRS Publication 590-A.
@goodoletaxes
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