- Traditional IRAs
- Roth IRAs
- SEP IRAs
- Simple IRAs
- 403(b) Plans
- Thrift Savings Plan
- Education Savings
Am I an Active Participant if I worked only one month?
Last Updated April 16, 2011
If you are not an active participant, or married to an active participant, the contribution is fully deductible.
If you are an active participant, and/or married to an active participant, the deductibility of the contribution would be determined by your MAGI and tax filing status.
Despite the fact that you worked for only one month, you can still be considered an active participant if you received contributions and/or benefits under the plan. The determination of your ‘active participant ‘ status depends on the type of retirement plan, your eligibly for participating in the plan and/or if contributions are made to the plan.
See Active Participant for examples of when an individual is considered an active participant under a plan. See also, Active Participant Status–Can You Deduct Your IRA Contribution?
This question was answered by Denise Appleby, CEO of Appleby Retirement Consulting Inc. Appleby Retirement Consulting Inc provides products and services for retirement accounts to financial, tax and legal professionals.