DanielV01
Expert Alumni

Retirement tax questions

That code D changes the math unless your company can backdate the 401K contribution to 2016 and re-issue both the 2016 and 2017 Forms w-2 that they issued.  In the same FAQ above, if you both "worked" (remember that your w-2 is considered wages) and "participated" in a company pension (the code D is a 401K contribution), then the limitation for fully deducting an IRA contribution is 99,000 of modified adjusted gross income, not 186,000. So if your income is higher than 99,000, you will want to see if the company can backdate the contribution and reissue corrected w-2s.  If they can't, then your option is to leave the contributions as nondeductible traditional IRA contributions, or speak to your plan administrator to recharacterize the contribution as a Roth contribution, which is also not deductible, but has fewer reporting requirements than does a contribution to a nondeductible Traditional IRA.
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