Covered by Retirement Plan
Hello-
Client (S Corp) set up a SEP IRA in calendar year 2021 and made a contribution which was deducted on the 2020 return. He also made a contribution in calendar year 2022 which will be deducted on the 2021 return.
The client is considered as being covered by a retirement plan at work for 2021 correct?
The currently filed W2 does not have the box checked saying covered by a retirement plan.
Thank you!
Permalink Submitted by Alan - IRA critic on Fri, 2022-02-25 15:07
Yes. Client is covered because because a contribution was made in 2021 to the SEP IRA. The retirement plan W-2 box should have been checked.