Dec 3, 2019
In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, discuss the pre-2001 Tax Act changes regarding 401(k) plans, new contribution rates for 2020, as well as the rates for simple IRAs, IRAs, and Roth IRAs, and benefits you receive if you turn 50 during 2020.
3 Key Points:
Are you considered “covered” by a Company Retirement Plan?
From the IRS website:
You’re covered by an employer retirement plan for a tax year if your employer (or your spouse’s employer) has a:
Box 13 on the Form W-2 you receive from your employer should contain a check in the “Retirement plan” box if you are covered. If you are still not certain, check with your (or your spouse’s) employer.
The limits on the amount you can deduct don’t affect the amount you can contribute. However, you can never deduct more than you actually contribute.