@c-luxion wrote:
I just want to be certain she is eligible to fund a traditional IRA in 2019 with a nondeductible contribution. If yes, then we will do this and immediately convert it to a Roth. If not, then we wait until next year and re-evaluate.
She has earned precisely $100 from an employer with a plan (one day of substitute teaching).
You can ALWAYS make a non-deductible IRA contribution as long as either spouse on a joint return has sufficient earned compensation (her own compensation is not necessary).
I would question the employer for the one day $100 W-2 with box 13 checked. It is VERY unlikely that ANY employee or employer 401(k) contribution would have been made for one days employment and $100 of pay. I doubt that a 401(k) plan was opened for a Substitute teacher for only one days employment. The W-2 may well be in error.
See this IRS link for Traditional IRA deduction limits when covered by a retirement plan at work.
https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
