Box 13 and my IRA

[pavemerc]

I am self employed and this year I was paid to be in a Movie.  The compensation amount was small but the talent company provided me with a W-2 with box 13 "retirement plan" checked.  Even though I didn't make much on the movie I cannot deduct the amount I contributed to my IRA (which is ten times more than I made on the movie) I checked and the retirement plan they are referring to is the Screen Actor's Guild pension plan but I didn't even make enough to be allowed to contribute.  So am I really covered by a "retirement plan" if I can't contribute to it? (my self employed income is more than $123,000.00

[macuser_22]

If you were paid with a W-2 then that was employment incime, not self-employed income.     The employer that paid you must believe that you are covered under the employer provided retirement plan.    Is anything on box 12 on the W-2?

If you did  not contribute to the plan then  perhaps the employer made an employers contribution to the plan in which case it would not be in box 12, but does require that box 13 be checked.

If you think that is in error then contact the employer to correct the W-2.

[pavemerc]

I meant to say I am self employed with my own business income yet, for one day, I was paid to be in a movie.  The way movie productions operate is through numerous LLC's that dissolve once the movie is complete. It was one of those LLC's that paid me as an employee, provided a W-2 then dissolved.  I can't get them to correct it since there is no more "them".  They made no contributions to the SAG pension fund on my behalf and I am not allowed to since I didn't make the min of $15,000 per year of employment as an actor (SAG Rules).  Effectively I am not covered by a retirement plan at work so block 13 is in error.  Can I "correct" block 13 myself and tell the IRS it is a "corrected" W-2?

[macuser_22]

The IRS gets a copy of the W-2 form from the employer.  I would not suggest changing it since that will guarantee an IRS audit letter and a bill for back tax.     It is best to fix these things prior to filing rather than try to clean up the mess later after you get a bill and your IRS account shows you in arrears of paying tax..   The IRS can help you with an incorrect W-2 but you must call them first.    Due to the Corona virus the IRS call centers have been closed so phone service is very limited at this time so you might need to wait a while.

[dmertz]

Because you were accruing service time used in calculating any potential future benefit from the plan, you are considered to be covered by the pension plan even if you are not yet vested in the plan.  From the box 13 instructions with regard to defined benefit plans (which is what a pension plan is):

Employee qualifies for employer funding into the plan, due to age/years of service—even though the employee may not be vested or ever collect benefits

and requires that box 13 Retirement plan be marked, indicating participation in a workplace retirement plan.