The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: pension plan ... deductible IRA Date:  8/9/2001  9:37 PM
Author:  pmarti Number:  53217 of 127611

My question is -- Am I considered "participating in a plan" when I have never contributed to the plan and also the fact that I had worked only for 14 days with the company in 2000.

You may not have been making contributions yourself, but you were covered by a retirement plan. If you're covered on any one day of a tax year, your traditional IRA contribution can be deducted only if you meet the AGI limits.

IOW, your accountant is right. You can confirm it in Publication 550.

Phil Marti
VITA Volunteer
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us