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New Member
posted Sep 30, 2023 5:48:02 AM

Limited IRA deduction

TurboTax is telling me I am limited in the amount of my IRA deduction because I am covered by an employer pension plan at work.  I worked 3 days in 2022 for the County Registrar of Voters - that is the only time I was covered by an employer pension plan.  Does that 3 days really limit my IRA deduction?

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1 Best answer
Level 15
Sep 30, 2023 1:35:20 PM


@mesax wrote:

It is a W-2


Ok...Then if the box for retirement plan box was checked you were covered by an employer retirement plan as an employee at your work even though it was only for three days.  So your IRA deduction may be limited depending on your filing status and your AGI

Go to this IRS website for IRA deduction for 2023 if covered by a retirement plan at work - https://www.irs.gov/retirement-plans/2023-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work

Go to this IRS website for IRA deduction for 2022 if covered by a retirement plan at work - https://www.irs.gov/retirement-plans/plan-participant-employee/2022-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work

 

 

4 Replies
Level 15
Sep 30, 2023 7:51:57 AM

What form did you receive from the County Registrar of Voters for the 3 days of work?  Was it a W-2 or a Form 1099-NEC?

If you were a poll worker it would be very unusual for the county to issue you a W-2 as an employee of the county for those three days.

New Member
Sep 30, 2023 1:24:22 PM

It is a W-2

Level 15
Sep 30, 2023 1:35:20 PM


@mesax wrote:

It is a W-2


Ok...Then if the box for retirement plan box was checked you were covered by an employer retirement plan as an employee at your work even though it was only for three days.  So your IRA deduction may be limited depending on your filing status and your AGI

Go to this IRS website for IRA deduction for 2023 if covered by a retirement plan at work - https://www.irs.gov/retirement-plans/2023-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work

Go to this IRS website for IRA deduction for 2022 if covered by a retirement plan at work - https://www.irs.gov/retirement-plans/plan-participant-employee/2022-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work

 

 

New Member
Sep 30, 2023 1:40:21 PM

Thank you