Hello,
My understanding of the IRA deduction is, as long as you did not make any contributions to a 401k, you are NOT considered covered by an employer retirement plan.
The Situation
I filed 2020 taxes already with the $6,000 max IRA contribution and was surprised earlier today with a W2 from my former employer. My last day of employment with them was January 2nd 2020. In January I received a final paycheck for my vacation days. I was contributing to a 401k plan with my former employer but opted out and DID NOT contribute to a 401k plan with my new employer. I also do not have box 13 checked on my current employers 2020 W2 which is correct since I am not covered by a retirement plan with that employer.
The Question
Do I count as a covered by a retirement plan in 2020 because a percentage of my vacation payout in January did go into that 401k ?
