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tmelly
Returning Member

Teachers' Pension and IRA deduction

I'm a teacher and part of the MO Teacher Pension.  Still planning to work for another twenty years as a teacher and member of the pension.  Can I still make deductible IRA contributions on top of the pension?  Am I considered a covered employee and subject to the lower contribution limits?

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4 Replies

Teachers' Pension and IRA deduction

If your W-2 has the 'Retirement Plan' box checked, then you can make IRA contributions subject to lower limits for year W-2 covers. https://www.irs.gov/retirement-plans/2019-ira-deduction-limits-effect-of-modified-agi-on-deduction-i... 

dmertz
Level 15

Teachers' Pension and IRA deduction

And box 13 Retirement plan on your W-2 should be marked because the pension plan is a workplace retirement plan that covers you for the tax year.

Teachers' Pension and IRA deduction

How is the retirement plan contributions accounted for on your taxes?  When I did my taxes this year there is nothing in the. 1040 on line 5a for Pensions listed.  Should the amount of contributions I made to retirement be on this line?

Teachers' Pension and IRA deduction

No.  Line 5a is for the Gross Distribution.  If the taxable amount on 5b is the same as the gross distribution on 1099R box 1 then it doesn't show the amount on 5a.


See IRS 1040 Instructions.
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

 

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