Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
IRA question
Old 04-18-2018, 01:00 PM   #1
Moderator
Jerry1's Avatar
 
Join Date: Nov 2014
Posts: 2,997
IRA question

I was given a package this year. They did not take out 401K contributions from that last check (one year salary). So I was thinking about putting some money into a IRA. Unfortunately, the limits come into play. If I'm considered as being covered by a employer plan, then the limits are much less. However, if I'm not considered covered, I could qualify to deduct an IRA contribution.

Does anyone know how to find out where I stand? Once severed from employment, can I say I'm no longer covered? Or, because I was covered at the beginning of the year, I have to say I'm covered?

The next question would be how much could I contribute. Would I have to limit the IRA contribution to the max less what I already put into the 401K? I haven't done extensive reading/research yet, but I don't see any partial year help coming up with Google searches. Please help me not have to read IRS publications - at least not without some help getting to the right publication/section.

Thanks.
__________________

__________________
Every day when I open my eyes now it feels like a Saturday - David Gray
Jerry1 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-18-2018, 01:51 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Mar 2013
Location: Coronado
Posts: 1,257
You are considered to be covered by a retirement plan for 2018. Probably the easiest thing to do would be to contact your former employer and ask if you can write a check to maximize your contribution for this year.

Here is the relevant section of the W-2 preparation instructions for employers:

Quote:
Form W-2, Box 13
The “Retirement plan” indicator in Box 13 shows whether an employee is an active participant in your company’s plan. If this box is checked, it lets the recipient know that depending on their filing status and modified adjusted gross income, they may not be entitled to a full deduction for their traditional IRA contributions. You should check the retirement plan box if an employee was an “active participant” for any part of the year in:

a qualified pension, profit-sharing, or stock-bonus plan under Internal Revenue Code Section 401(a) (including a 401(k) plan).
an annuity plan under IRC Section 403(a).
an annuity contract or custodial account under IRC Section 403(b).
a simplified employee pension (SEP) under IRC Section 408(k).
a SIMPLE retirement account under IRC Section 408(p).
a trust described in IRC Section 501(c)(18).
a plan for federal, state, or local government employees or by an agency or instrumentality thereof (other than a 457(b) plan).

Active participant
Generally, an employee is an active participant if covered by a:

defined contribution plan (for example, a 401(k) plan) for any tax year and is credited with any contributions or forfeitures, or
defined benefit plan for any tax year that the employee is eligible to participate.
Don’t check the retirement plan box if your company only has non-qualified or 457(b) plans.
__________________

cathy63 is offline   Reply With Quote
Old 04-18-2018, 02:39 PM   #3
Moderator
Jerry1's Avatar
 
Join Date: Nov 2014
Posts: 2,997
Quote:
Originally Posted by cathy63 View Post
You are considered to be covered by a retirement plan for 2018.
Was hoping that wasn't the case.

Quote:
Originally Posted by cathy63 View Post
Probably the easiest thing to do would be to contact your former employer and ask if you can write a check to maximize your contribution for this year.
Tried that, however, once separated from service, all activity ends. Period.

Quote:
Originally Posted by cathy63 View Post
Here is the relevant section of the W-2 preparation instructions for employers:
Thanks.
__________________
Every day when I open my eyes now it feels like a Saturday - David Gray
Jerry1 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Question re: Rollover from High-Fee 401K to IRA, and Possibly to Roth IRA Mo Money FIRE and Money 6 06-27-2015 04:27 PM
IRA /Roth IRA Question Rickt FIRE and Money 15 07-02-2014 09:35 PM
Can I max out my Roth IRA, Trad. IRA, and SIMPLE IRA? thefed FIRE and Money 9 09-24-2007 05:52 PM
IRA to a ROTH IRA, and back again? Brat FIRE and Money 1 02-03-2005 12:56 AM

» Quick Links

 
All times are GMT -6. The time now is 05:49 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
×