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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: What is active participation in an 401k? Date: 2/22/2000 6:15 PM
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<< First off, I was very foolish (That's lower case f!!!)last year. Due to my financial situation, I was unable to take part in my employers 401k plan. I never enrolled, nor did I put any money into it. My situation has changed, and I would like to make a contribution to a deductible IRA, for 1999. On line 15 of my W-2, my employer marked the "pension plan" box. Does this exclude me from making a tax-deductible IRA contribution? >>

No, but it does make you subject to the AGI test for deductibility. See the instructions for line 23 of Form 1040.

<< And what constitutes an active participant in an employee sponsored pension plan? >>

I'm sure someone will be along to correct me if I'm wrong, but I believe that if you CAN contribute to a 401(k) you're covered, whether or not you actually contribute.

Phil Marti
Tax Preparer
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