W-2 Box 13 Retirement Plan

Forum|Forum|7 years ago
June 3, 2019
1 reply
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I switched jobs in 2016. My first employer provided a retirement plan but my second did not. I contributed to my individual IRA while at my second position but TurboTax is saying I cannot claim the entire deduction because a retirement plan was provided by my first job. Any thoughts on how I can claim the full deduction?

TurboTax Deluxe Online

Best answer by

That is correct that you can't deduct the contribution if you are over the limit. See below.

Contribution Basics

As long as you're under 70 1/2 years old and you have compensation, you're always allowed to contribute money to a traditional IRA. Compensation means income from working or taxable alimony you receive. However, if you participate in an employer-sponsored retirement plan, such as a 401(k), you're not allowed to deduct your traditional IRA contributions on your taxes if your modified adjusted gross income exceeds the annual limits.

Plan Participation

You're considered a participant in your 401(k) plan for any year that money gets added to your account, either through your own elective deferrals or through your employer's matching contributions. For example, say you contribute $500 to your 401(k) plan in January 2013, then get fired. Because money was added during the 2013 calendar year, you're considered a plan participant for all of 2013. Alternatively, say you get fired in November 2013, but your company makes a matching contribution to your account on Jan. 15, 2014. You're also a participant for 2014.

http://finance.zacks.com/can-contribute-ira-same-year-job-terminated-401k-9547.html

A

Anonymous

Answer

That is correct that you can't deduct the contribution if you are over the limit. See below.

Contribution Basics

As long as you're under 70 1/2 years old and you have compensation, you're always allowed to contribute money to a traditional IRA. Compensation means income from working or taxable alimony you receive. However, if you participate in an employer-sponsored retirement plan, such as a 401(k), you're not allowed to deduct your traditional IRA contributions on your taxes if your modified adjusted gross income exceeds the annual limits.

Plan Participation

You're considered a participant in your 401(k) plan for any year that money gets added to your account, either through your own elective deferrals or through your employer's matching contributions. For example, say you contribute $500 to your 401(k) plan in January 2013, then get fired. Because money was added during the 2013 calendar year, you're considered a plan participant for all of 2013. Alternatively, say you get fired in November 2013, but your company makes a matching contribution to your account on Jan. 15, 2014. You're also a participant for 2014.

http://finance.zacks.com/can-contribute-ira-same-year-job-terminated-401k-9547.html