Am I "covered" by employer plan?

[ralcrna]

Terminated my employment on the last day of last pay period of 2017 but stayed in a "casual" status.  They needed some help the last week of the year so I obliged.  That was paid in the first pay period in 2018.  I did not contribute to anything into the 401K but the employer contributed $17.60 in matching funds. I did not work further in 2018.  I later terminated my casual status.  At that point I receive a disbursement for the matching funds and later I received a disbursement for "safe harbor" (profit sharing) funds that I assume were for the year 2017, all of which zeroed the 401K.  When I received my W-2 the "pension plan" box was checked.  I assume that the $17.60 pretty much makes me covered but I would like to hear if anyone has other opinions.  Thanks.

[Rachel_W · Accepted solution]

Yes, the IRS considers you to be "covered" for the whole year, even if it was only one day.  

If the pension plan box is checked on your Form W2, the IRS will consider you "covered" by an employer plan for 2018.