"Bob B" <bobabrown[at]comcast.net> wrote:

- quote -

seems the monies put into the 401k were otherwise taxable
wages, is a 1099-r proper, or shouldn't ss and medicare be
withheld on it, as well as federal income tax paid on it,
all reported on a 2004 ?

sounds like maybe corrected forms w-2 and w-3 should be
filed by your employer to report the additional wages if so,
then you shouldn't have matching problems with your 2004
form w-2 (corrected) and any deductible 2004 ira
contribution reported on your return

you could contact the irs by phone (might be real busy this
time of year with long waiting times) and trust their answer
(right +/- 70% of the time now is it?) or hire a
professional for help

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Bob B wrote:

- quote -

I believe this will be treated the same as an excess
deferral. You report the amount that was returned to you as
wages for 2004. Just add it to Line 7 of the return. Make
your IRA contribution before 4/15 and deduct it. Attach a
statement that explains what happened and that the amount
was reported on Line 7 as wages.

--
Alan
http://taxtopics.net

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This is a strange situation: During 2004 I was making
regular payroll deductions/contributions to my employer's
401k plan. Yesterday, I received a check in the amount of
my contributions plus earnings thereon. Turns out I was
ineligible! In early 2006, they are going to send a 1099-R
for that amount and label it as attribtable to 2004!

My question is this: my W-2 shows that I was in a qualified
plan and shows the amount that went to the 401k. But,
actually, it turns out that wasn't true. But my concern is
that if I make an IRA contribution (for 2004), the IRS will
disallow the deduction because of the W-2 information. Does
anyone have any suggestions as to how to handle this?

Thanks in advance.

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