Am I Covered by a Pension Plan In 2017 if I retired in April
I retired in April 2017, from a company with a pension plan. I elected to NUA company stock this year so my 2017 income is high and I would not qualify for a deductible or Roth IRA due to income limitts (if I am considered covered by a pension plan.) My (Non NUA) taxable income was earned from a company with a pension plan. So I assume I am considered “covered” by a pension plan for IRA purposes, even though now retired. But I wanted to check to make sure I cannot contribute to an IRA in 2017 and take a deduction.
Thanks for your help.
Permalink Submitted by Alan - IRA critic on Mon, 2017-12-04 22:44
You are correct that you are considered an active participant even if you only fall into that category for one day in 2017. You can make a non deductible TIRA contribution, but you probably have a non Roth IRA balance that would result in any conversion of the non deductible contribution being mostly taxable.