For the federal return TT Premier asks, are you covered by a retirement plan at work?

[mtiede]

What is this asking about?  My wife and I are both retired, so there is no "at work".  But we do have a pension plan and 401k and so on.  Are they asking if we had such retirement plans WHEN we worked?

[MinhT1]

No, this is asking whether you are covered in 2020 by a retirement plan at work such as a SEP-IRA, 401(k) etc...

If you are covered, you should receive a form W-2 with box 13 checked for retirement plans. Otherwise, the answer is No. 

[mtiede]

Still not clear.  I wouldn't have a W-2 with box 13 checked, because I'm retired.  So I don't get a W-2.  When I DID work, I contributed to a retirement plan.  Now, in a normal, non-2020 year, I would get RMD, but because of CARES, I didn't get that.  But I still HAVE a 401K plan from which I normally get distributions.  But at this point, it would seem to have nothing to do with work.

But I think the question is asking if I AM working am I covered by a 401K.

But it just isn't clear if that is what they are asking. 

I think the choices for the interpretation of the question is one of these:

1. Are you working and you have a 401k?

2. Are you no longer working, but you have a 401k that you contributed to when you worked?

3. Or you just don't have a 401k?

Or if they are just asking if I have a 401K.

[BillM223 · Accepted solution]

As Minh said, the question wants to know if you are working and have the opportunity to contribute to a retirement plan (if so, that box 13 should be checked).

The reason it is asking is because in some cases, your deductible IRA contributions may be limited if you also have the ability to contribute to a retirement plan at work.

If you are already retired, this is a moot point. In your case, just answer "No".

[mtiede]

Ok, I guess TurboTax couldn't figure out from my "Personal Information" what the word "Retired" meant there.

I'll answer "No".

Thanks.

[jchancio]

Box 13 on which form has to be checked

[jchancio]

Where do i "just say NO" -?

[BillM223]

@jchancio

We are referring to box 13 on your W-2. Of course, if you are fully retired, you don't have a W-2, but the issue doesn't apply to taxpayers who are not working anyway.