eligible for deductible ira contribution
My client works for a company and is a union employee and has money deducted for a union retirement plan. On his W-2 it is not marked as a retirement plan participant, so his CPA said he is eligible to deduct his IRA contribution even though he is over the threshold of the income limit. Is this correct?
Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2015-03-16 17:32
Union plans are not exempt from the active participant rules, so there is a very good chance that the W-2 is incorrect. Client should directly ask the W-2 issuer why this box was not checked. If no credible response to inquiry and if CPA wants to file as is, then client should get an agreement from the CPA that if the W-2 is corrected, there will be no charge to file an amended return.