401K closed within one month of opening

[starcincin]

Hi,

I have participated 401k in 2020.  Due to COVID, I have changed the job and 401K was closed automatically by the employer because there was only one month of contribution and the amount was way under $5000.  

I was issued 1099-R and my W-2 shows that I had participated 401K.  Thus, my traditional IRA contribution was not deductible.  Is there a way around it?  Because I really did not have 401K plan at work and money was returned in 1099R, the company match was also taken away.

Please help....any input would be greatly appreciated!

Thanks in advance!

[Mike9241]

sorry, but you were covered by an employers' plan. what you could have done was roll the 401K distribution into an IRA. 

[starcincin]

Thanks for helping!  The 401K distribution was very little.  The tax penalty was the least of my concern, but I was hoping traditional IRA contribution could have saved about $1000 of tax.  Since the 401K was only opened a month and got distributed back to my account, I did not get any benefit, except paying some tax penalty and also the penalty of not been able to get tax deduction for IRA contribution.  There really wasn’t any method to resolve this then?

Thanks for helping!