1368226
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Do I qualify for the IRA deduction if I had the option of a workplace 401K plan but did not participate in it?

I thought I could make a $6000 contribution and benefit from the tax deduction. TurboTax is trying to tell me otherwise. There was an anomolous event which could have affected this. My employer 'accidentally' made a deduction for my 401k (which existed from a previous contract with this employer). This error was 'fixed' in the form a check sent to me by Fidelity. Could this be causing the issue, or could other factors be at play?
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
MinhT1
Expert Alumni

Do I qualify for the IRA deduction if I had the option of a workplace 401K plan but did not participate in it?

If you are eligible to participate to the 401(k) at plan but chose not to contribute to it, you are still considered as being covered by a retirement at work and box 13 on your form W-2 is checked.

 

As a consequence, the deduction of an IRA contribution may be reduced or eliminated depending on your MAGI.

 

Please read this IRS document for more information.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question