Laid off. 401k auto rolled (no other option) over to IRA. Can I still create an IRA for income deduction in 2018? Thank you very much for your help!

[valcowing]

I was laid off. In taking my first withdrawal from my 401k I was told I could only make this one withdrawal and the rest *must* be rolled over into an IRA. 

As my unemployment progressed I withdrew from the IRA until it was gone (2018).

I have a job now and want to create a traditional IRA before April 15, 2019 to be attributed to my 2018 tax year for the income deduction. 

Did that 401k forced rollover from my 401k to an IRA mean I can't now create one for 2018?  

BTW, I only received one 1099-R from Fidelity noted as "G"=direct rollover. I didn't receive a 1099 for the subsequent withdrawals from the IRA.

[fanfare]

in order to contribute to an IRA and deduct it you must be within the income bounds that permit that. A retirement plan at work will influence those bounds. put in the contribution and see if TurboTax allows a deduction.
If not, reset it to zero (or make a non-deductible contribution).

[macuser_22]

1) When you left employment you had a legal choice to take a distribution OR rollover the 401(k) to an IRA.  Whoever told you otherwise was either uninformed or misunderstood.

2) If your new job offers a 401(k) then nothing in the past will affect that.

3) You enter the 1099-R with the code G in the retirement 1099-R section and that will be a non-taxable rollover.

4) If you took distributions form the rollover IRA in 2018 then by law, you should have received  a separate 1090-R no later then Jan. 31 2019 reporting those distributions.  If not, contact the IRA custodian for a replacement 1099-R.  Those distributions will be taxable income on your 2018 tax return.

[valcowing]

Thank you for your time. I'm so sorry I wasn't clear in my question. Can I still create a traditional IRA, attributed to 2018?
(since my 401k mandatorily emptied to a cash IRA upon my first withdrawal)

[macuser_22]

For 2015, 2016, 2017 and 2018, your total contributions to all of your traditional and Roth IRAs cannot be more than:

  -  $5,500 ($6,500 if you’re age 50 or older), or
  - your taxable compensation for the year, if your compensation was less than this dollar limit.

     (Taxable compensation is generally wages that you worked for - W-2 or net self-employed income minus the deducible part of the SE tax, but can include commissions, alimony and separate maintenance, and nontaxable combat pay ).   

A rollover does not count as a contribution.

[valcowing]

Thank you do much, macuser_22! That was the answer I was hoping for 🙂 AWESOME - YOU! Thanks, again.

[dmertz]

Regarding 1), I suspect that the plan agreement required distribution because the balance was under a certain amount.  An auto rollover would be done if no other election was made and the balance was above a certain amount (but below the amount were the money would be permitted to remain in the 401(k)).

[valcowing]

Fidelity told me it was an employer choice not to carry the 401k, once a withdrawal was initiated by a past employee. If factual, I presumed it was due to employer administration costs. Had I not needed to take a withdrawal it wouldn't have come up ($30k balance).

To your point, I did have a separate $350. 401k balance returned to me because it was below the minimum $5k required so, yep there is that.

I've confirmed having my 401k rolled over to a cash IRA doesn't preclude me from creating a new IRA for this past year by April 15 for the tax deduction 🙂
My thanks to All.