topic If I don't work now but I am collecting a monthly check from a pension from my previous employer, is that considered a defined benefit plan? in Retirement tax questions

If I don't work now but I am collecting a monthly check from a pension from my previous employer, is that considered a defined benefit plan?

vmartins1-int — Sun, 14 Mar 2021 22:26:34 GMT

I am contributing an IRA to my non-working spouse and TurboTax asks if my non-working spouse has a defined benefit plan.

Re: If I don't work now but I am collecting a monthly check from a pension from my previous emplo...

ColeenD3 — Sun, 14 Mar 2021 22:55:39 GMT

Not necessarily. There are many types of pensions, including 401k. If you don't know what type of plan it is, ask the plan administrator. If your spouse did not work at all in 2020, she was not covered by an employer plan.

Defined benefit plans provide a fixed, pre-established benefit for employees at retirement. Employees often value the fixed benefit provided by this type of plan. On the employer side, businesses can generally contribute (and therefore deduct) more each year than in defined contribution plans.

Re: If I don't work now but I am collecting a monthly check from a pension from my previous employer, is that considered a defined benefit plan?

VolvoGirl — Sun, 14 Mar 2021 22:57:50 GMT

If you don't have any earned income from working (pension doesn't count) you can't contribute to a IRA for either you or your spouse.