topic ira deduction in Deductions & credits

ira deduction

denjack79 — Thu, 04 Feb 2021 15:24:27 GMT

I worked for the same company for many years and had a retirement plan. I never took an ira deduction as retirement plan box was always checked. I left in fall of 2019.Istarted with a new company in 2019 and worked into 2020 . this company had no retirement plan.

Recently I received a w2 from new company for work in 2020.."no x marked".Also received a w2 from old company as a residual check for work done in 2019."x marked," even though I no longer work for them.

I opened an ira in 2020.

My question is, what do I do about filling out my my tax return and irs...

I am taking ira deduction but irs will see erroneous box checked on w2.

Is there a special note etc.

thank you

Re: ira deduction

macuser_22 — Thu, 04 Feb 2021 15:54:23 GMT

Check with the old company to see if there is an error, but it is probably correct. Many company retirement plan years are not calendar years and can span calendar years. It is entirely possible that contributions made by the company for your benefit came in the new year so the W-2 would be correct.

Also is there any entry in box 12 like a "D 19 xxx" where D is a 401(k) plan, 19 means the 2020 contributions was applied to 2019, and xxx is a dollar amount? However, employer contributions to the plan are not reported in box 12, but do cause the box 13 to be checked.

Re: ira deduction

denjack79 — Thu, 04 Feb 2021 16:54:57 GMT

I made no contributions to 401k nor did my company in 2020.

the residual check was for work done in 2019 before i left.

Re: ira deduction

macuser_22 — Thu, 04 Feb 2021 20:44:42 GMT

As I said above - You must ask the company why the retirement plan box is checked. Only they can tell you, and if checked in error they must issue a corrected W-2. The IRS receives the W-2 from the employer and will go by what the employer reports.