Can I do a catch-up contribution to an IRA after doing an rollover from my former employers 401k?

[Anonymous]

I was employed until the end of December of 2018, and contributed to the workplace retirement plan. I rolled this over to a traditional (rollover) IRA. I was going to do a catch-up contribution to the IRA, but it seems my income was higher than the limit to receive a deduction for contributing to this IRA, in the same year as contributing to the 401k. Is there no way to receive a deduction for the catch-up to the rollover IRA?

[MinhT]

If you are covered by a retirement plan at work and your IRA deduction is phased out by your income, this phase-out also applies to the catch-up contribution.

Please read this IRS document:

https://www.irs.gov/retirement-plans/plan-participant-employee/2018-ira-contribution-and-deduction-l...

[Anonymous]

I appreciate the swift response, I was aware of the 2018 IRA Contribution and Deduction Limits from the IRS website. I've been scouring for information specifically related to the IRA rollover from a 401k. I'm guessing it doesn't matter if it was rolled over to an IRA or not? The IRS website does not mention this specifically. If the 401k was still active, and I had not been laid off, I could have taken advantage of a catch-up contribution to the 401k to receive a deduction for it, but since I cannot, I seem to be stuck with the limits. Do you know if that is absolutely the case?

[dmertz]

Being an active participant in an employer plan means that additions were made to the employer-plan account for 2018.  The rollover from the 401(k) to the IRA has no bearing on whether you were an active participant for 2018.  the IRS goes by the marking of box 13 Retirement plan on your W-2 as the indication that you were an active participant for 2018.