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In 2023 client took all the funds in his 401K and rolled it into his own self managed IRA account.

In 2024 he makes an $8k contribution to the account. At first glance it only gives him partial credit for the deduction due to the phaseout of total income and because his company offers a retirement plan ( or at least did ) and that is my question?

His w-2 has always shown box 13 checked but didn't this year. He says that is because he is not contributing but that doesn't sound right and I always thought that whether you participate or not determines how much of an IRA contribution can be made.

When I uncheck the box 13 on the w2 ATX gives hm full credit for the contribution.

Thanks for any insights.

Dave T

 

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