@redhead-88 wrote:
Okay, thank you for clarifying that.
I have one more question. Can you use the money you contributed to your 401k (which was rolled over to a Traditional IRA) in 2020 as a deduction?
Thank you!
Money contributed to a qualified workplace plan via payroll deduction is already covered on your W-2--it is listed in box 12 and the wages have already been removed from your W-2 box 1 taxable wages. You can't take an extra deduction, it has already been subtracted from your taxable wages. Do not enter the contributions later. IRAs and 401(k) are handled completely differently on your tax return even though they have similar purposes.
You always are allowed to roll a workplace plan over into a private IRA after you leave the employment, you don't have to invoke special COVID rules.
