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WCJER
Level 2

I receive a monthly check from my former employer because I retired early on disability. How do I answer when TT asks if I am covered by a retirement plan at work?

Because I am receiving a monthly check, I am covered by a retirement plan, but my former employer is not contributing new money to that plan. The amount I receive is taxable. I am below the minimum retirement age.  I want to contribute to my traditional ira. Distribution code on 1099-R is 3. The IRA/SEP/SIMPLE box is empty.

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MichaelMc
New Member

I receive a monthly check from my former employer because I retired early on disability. How do I answer when TT asks if I am covered by a retirement plan at work?

Receipt of a disability pension is not the same as being "covered" by a retirement plan at work during the tax year. I see no reason why you cannot contribute to your traditional IRA, provided you have another source of earned income from which to draw the IRA contribution or, if married filing jointly, your spouse has earned income equal to your and your spouse's IRA contributions.

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MichaelMc
New Member

I receive a monthly check from my former employer because I retired early on disability. How do I answer when TT asks if I am covered by a retirement plan at work?

Receipt of a disability pension is not the same as being "covered" by a retirement plan at work during the tax year. I see no reason why you cannot contribute to your traditional IRA, provided you have another source of earned income from which to draw the IRA contribution or, if married filing jointly, your spouse has earned income equal to your and your spouse's IRA contributions.

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