How do you know you have a 401k at work?

[johngross]

Yes, I know my company offers a 401k and I have been participating. But, my question is, in the eyes of the IRS, how do they determine you worked for an employer who offered a retirement plan for tax year 20xx?

My situation (and I'm sure thousands if not millions of people have dealt with this). I worked Jan, Feb and March of this year for an employer who had a 401k. Now I retired.

So....

When I sit down in 2024 to do my taxes for this year, did I or did I not work for a company who offered a retirement plan?

Yes, I already checked the IRS website, as well as other sources, and can't find the answer. So anyone who can direct me to some credible information to peruse it would be appreciated.

Closest I've come is the married/single rule. Your martial status on the last day of the year is the determining factor. Maybe having or not having a retirement plan at work on the last day of the year is the same?

Thanks.

 

[Just another 22 shooter]

I strongly encourage you to talk to a financial planner.
You're going to have other questions that you don't need to be asking on the internet.

 

[s&wchad]

Even though you only worked 3 months, you'll receive a W-2 for tax year 2023 from your employer.

Deferrals to a 401K are listed on the W-2 in Box 12b under code D. This money is taken out in pre-tax dollars and reduces your taxable income for the year. You do pay tax when you take money out of the retirement account.

Since you're retired and no longer have employer health care, you need to sign up for Medicare ASAP.

 

[Puller]

Whether you did or did not work for an employer who offers a 401K is irrelevant. It's whether YOU participated or not.

 

[coltle6920]

I have a 401K which I participated in for 35yrs. As was said above it is pretax income unless it's a ROTH 401K. I've made a lot of money over the years and also lost quite a bit.

To put it plain and simple it's none of the IRS concern until you start to withdraw any of the monies. At that point you should get the form 1099-R from whoever held your 401K and it wont be your employer unless they are the actual one investing your money. That's highly unlikely.

I use Turbotax every year. Punch in the info from the 1099-R and let them do the calculations for me. You'll only get a 1099-R for the years you actually withdraw funds. Doesn't matter how the monies in your 401K were invested.

It might sound confusing to some of us but it's really nothing to worry about.

 

[johngross]

Ok, my fault. I guess I wasn't clear in my initial post. You guys are addressing things and answering questions I didn't ask. I felt my post was a bit long and didn't want to drag it out anymore, but perhaps this following bit of information I excluded was needed.

In addition to my 401k I also have an IRA. How much (if any) of your IRA contribution you can deduct from your income depends upon your Modified Adjusted Gross Income and whether your employer offers a retirement plan.

Since for part of the year I worked with an employer who offered a retirement plan, and part of the year I did not work for an employer with a retirement plan, does the IRS consider me covered by a retirement plan or not? (Note my analogy about how the IRS treats marital status in my original post).

Any leads to credible sources would be appreciated.

Thank you, and again, my apologies.

 

[s&wchad]

This might help...

401(k) and IRA Contributions: You Can Do Both

 

[johngross]

I strongly encourage you to talk to a financial planner.
You're going to have other questions that you don't need to be asking on the internet.

I fired my tax guy a few years ago when my I had one W-2, my wife had one W-2 and one 1099 for $200 in capital gains. For that he charged $425. I complained and he reduced it to $375. After that I went back to doing my own taxes.

Also, please note I asked forum members for credible sources where I could continue to research the matter myself. I'm not going to solely rely on BigStudDaddy from the S&W forum for tax advice.

Thank you for your concern.

 

[SMSgt]

I fired my tax guy a few years ago when my I had one W-2, my wife had one W-2 and one 1099 for $200 in capital gains. For that he charged $425. I complained and he reduced it to $375. After that I went back to doing my own taxes.

Also, please note I asked forum members for credible sources where I could continue to research the matter myself. I'm not going to solely rely on BigStudDaddy from the S&W forum for tax advice.

Thank you for your concern.

Ask H&R Block.

 

[johngross]

This might help...

401(k) and IRA Contributions: You Can Do Both

Thank you. The answer was not there BUT they had a couple of links to the IRS website where my question is answered.

Thank you.

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Are You Covered by an Employer's Retirement Plan? | Internal Revenue Service


"You’re covered by an employer retirement plan for a tax year if your employer (or your spouse’s employer) has a:

Defined contribution plan (profit-sharing, 401(k), stock bonus and money purchase pension plan) and any contributions or forfeitures were allocated to your account for the plan year ending with or within the tax year."