W2 Box 13 Retirement Plan Checkbox Decision Chart
When you receive your W2 form, you may notice a box labeled "Retirement Plan" in Box 13. This box is used to indicate whether you are an active participant in a retirement plan. This article will provide you with a decision chart to help you determine what to check in Box 13.
What is Box 13 on the W2 form?
Box 13 on the W2 form is used to indicate whether you are an active participant in a retirement plan. You may see a checkbox labeled "Retirement Plan" in this box, and you will need to determine what to check based on your situation.
What is an active participant in a retirement plan?
An active participant in a retirement plan is someone who is currently contributing to a retirement plan at their place of employment. This includes plans such as a 401(k), 403(b), or pension plan.
Decision Chart
Use the following decision chart to determine what to check in Box 13:
If you are an active participant in a retirement plan:
- If you are covered by a traditional pension plan, check the "Retirement Plan" box.
- If you are covered by a 401(k), 403(b), or other defined contribution plan, check the "Retirement Plan" box.
If you are not an active participant in a retirement plan:
- If you are not eligible to participate in a retirement plan, leave the "Retirement Plan" box blank.
- If you are eligible to participate in a retirement plan but choose not to, leave the "Retirement Plan" box blank.
Why is it important to check the correct box?
Checking the correct box in Box 13 is important because it affects your eligibility to deduct contributions to a traditional IRA on your tax return. If you check the "Retirement Plan" box, you may not be able to deduct your contributions if your income exceeds certain limits.
Conclusion
Understanding what to check in Box 13 on your W2 form is important for determining your eligibility to deduct contributions to a traditional IRA. Use the decision chart provided to ensure that you check the correct box based on your situation.