covered by a plan?
My client has 401(a) and is part of a union, but box 13 is not checked on his W-2. His CPA says he can deduct his IRA contribution. Any thoughts on this?
My client has 401(a) and is part of a union, but box 13 is not checked on his W-2. His CPA says he can deduct his IRA contribution. Any thoughts on this?
Permalink Submitted by Alan - IRA critic on Mon, 2016-03-07 23:29
If the W-2 is correct he is not an active participant. But this one could be incorrect. Client should check with employer instead of guessing to get an explanation, since any revision will result in an amended return client would have to pay for. CPA should agree to hold up the e file for a week or so for client to confirm that the W-2 is correct, Here is the definition for active participation: http://retirementdictionary.com/definitions/activeparticipant