Question

is a regular employer pension a "qualified retirement plan accroding to IRS?

Forum|Forum|5 years ago
March 15, 2021
1 reply
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I am in TT and its asking if I have a qualified retirement plan - ie to check if I am eligible to take a Trad IRA deduction........

I have 401ks, but did not make any contributions last year, since I retired in 2019

I also collect an "old style" regular pension ie monthly payments until my death... is this kind of plan also a qualified retirement plan?

S

SundayInSalem

A 401(k) and a traditional defined benefit pension are both qualified retirement plans.

According to a non-technical explanation by Bankrate: "A qualified retirement plan is a retirement plan recognized by the IRS where investment income accumulates tax-deferred. Common examples include individual retirement accounts (IRAs), pension plans and Keogh plans. Most retirement plans offered through your job are qualified plans."

What is a qualified retirement plan

DawnC

Employee

Covered by a retirement plan means you are eligible to make contributions at work. If you are retired and not working, the answer would be NO. To contribute to an IRA, you (or your spouse) must have earned income. If you are not covered by a retirement plan at work (because you didn't work in 2020), is there earned income on your return? If not, you can't make IRA contributions anyway.

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X

Xian2Author

good point, and yes I actually received a bonus payment for 2019 in 2020 and got a W2 for it....

but I wonder if just collecting a company pension already limits then y ability to get a a tax deduction for any IRA contribution as per my original question