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diclune
New Member

Can I open a Traditional IRA for 2018? I contributed to an employer sponsored 401k for the month of January 2018 only.

I worked for one month in 2018 (January). In January 2018, I contributed to an employer sponsored 401k plan. Was on unpaid medical leave from mid-January until September 2018, then officially terminated on September 2018. Can I open a Traditional IRA for 2018 despite contributing to a 401K for one pay period?

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Accepted Solutions
macuser_22
Level 15

Can I open a Traditional IRA for 2018? I contributed to an employer sponsored 401k for the month of January 2018 only.

You can always contribute to a Traditional IRA.   The contributions might not be deductible if covered by a retirement plan at work.    You are covered for the entire year if covered for at least one day (or one day of the plan year that can be different that a calendar year).

Covered by a retirement plan at work is usually indicated by box 13 on your W-2.

  Make sure the W-2 (s) were entered for the correct spouse.
  Make sure that the IRA contribution is for the correct spouse.

Check your W-2 box 12 also.

TurboTax makes that determination if any of the following are true:

1) Box 13 (retirement plan) on your (or spouses) W-2 is checked,
2) Box 12 on your (or spouses) W-2 contains codes D, E, F, S, or AA/
3) You answered “yes” to the “Are you covered by a Retirement Plan at work” in the interview.
4) You have a self-employed retirement plan.

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.**

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1 Reply
macuser_22
Level 15

Can I open a Traditional IRA for 2018? I contributed to an employer sponsored 401k for the month of January 2018 only.

You can always contribute to a Traditional IRA.   The contributions might not be deductible if covered by a retirement plan at work.    You are covered for the entire year if covered for at least one day (or one day of the plan year that can be different that a calendar year).

Covered by a retirement plan at work is usually indicated by box 13 on your W-2.

  Make sure the W-2 (s) were entered for the correct spouse.
  Make sure that the IRA contribution is for the correct spouse.

Check your W-2 box 12 also.

TurboTax makes that determination if any of the following are true:

1) Box 13 (retirement plan) on your (or spouses) W-2 is checked,
2) Box 12 on your (or spouses) W-2 contains codes D, E, F, S, or AA/
3) You answered “yes” to the “Are you covered by a Retirement Plan at work” in the interview.
4) You have a self-employed retirement plan.

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.**

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