Active participation in a Qualified retirement plan?

Am I an active participant in a qualified retirement plan (“QRP”) for the 2024 tax year?

I maintain a self employed qualified profit sharing retirement plan for my service business.  I am a sole practitioner.

The QRP is still in existence and the  QRP did not and will not make any contributions on my behalf (in either 2024 or 2025) for deduction on my 2024 personal tax return.

Contributions were made on my behalf (by my employer = me) for deduction on my 2023 personal tax return.  $300 of such contributions were made in February of 2024 and were designated with Charles Schwab as 2023 contributions as such contributions were made prior to the filing of my 2023 tax return.  All of the contributions (including the $300 contribution made in February of 2024) were deducted on my 2023 tax return.

Do the $300 of contributions made by my employer to my plan in February of 2024 (DESIGNATED TO BE DEDUCTED IN 2023) make me an active participant in a qualified retirement plan during 2024 (thus preventing me from personally deducting an IRA contribution on my 2024 personal tax return as my AGI is too high)?

Related question…..

Same facts as above…..if I make an IRA contribution in January of 2025 FOR THE 2024 TAX YEAR and then make 2025 QRP contributions during 2025, is my IRA contribution made in January of 2025 but designated to 2024 still deductible on my 2024 tax return even though it was made in the same calendar year that my business made QRP contributions on my behalf?

 

 



Are only employer contributions made to this plan, or were there also employee contributions made by you?  If so, in which years?

The QRP is for my self employed business.  Contributions are ONLY made based upon a percentage of my Schedule C net income.

Correct me if I’m wrong, but my assumption is that ALL of the contributions for all years are made by my employer and not by me personally.

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