topic Re: Covered by retirement plan at work? in Retirement tax questions

Covered by retirement plan at work?

sam14 — Wed, 11 Feb 2026 10:01:41 GMT

I receive LTD benefits from a plan paid for by an ex-employer. The benefits are deemed "earned income" and are on a w-2, with an insurance company as agent for the ex-employer. I have a 401k with the ex-employer, but no contributions have been made to the 401k during the tax year. I am not currently eligible for defined benefit plan payments.

Should I be classified as "Covered by an Employer Plan at Work" or not on the w2?

And if not, then am I therefore eligible to deduct a Traditional IRA contribution? or make a Roth IRA contribution?

Re: Covered by retirement plan at work?

DoninGA — Tue, 04 Jun 2024 23:27:42 GMT

Whether or not you are covered by a retirement plan at work for making a contribution to an IRA is not relevant if you do not have taxable compensation.

If you do not have taxable compensation you cannot contribute to any type of IRA.

IRS website for IRA contributions - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

Go to this IRS website for Publication 590-A page 6 for compensation information - https://www.irs.gov/pub/irs-pdf/p590a.pdf#page=6