I dont contribute to a 401K at work but my employer set up a 401K PSP and deposited $101.00 dollars of his money in it. Am I now considered as having a 401K at work?

[rds51]

All of the money is from the employer and I have always declined to participate in a 401K. It is listed as a qualified non elective contribution and my plan status is non contributing. I am concerned that if this means I have a 401K at work my MAGI is too high to deduct my IRA contributions.

[MichaelL1 · Accepted solution]

Yes, you are considered part of a plan at work.

"You’re covered by an employer retirement plan for a tax year if your employer (or your spouse’s employer) has a:

• Defined contribution plan (profit-sharing, 401(k), stock bonus and money purchase pension plan) and any contributions or forfeitures were allocated to your account for the plan year ending with or within the tax year;"
   
  

Source:  https://www.irs.gov/retirement-plans/are-you-covered-by-an-employers-retirement-plan