The answer to this question depends on your type of retirement plan. Generally, if your employer's plan has a separate account for each employee, it is a defined contribution plan. If any amount was contributed or allocated by you or your employer to your account, you are considered covered. It does not matter if you have worked long enough to be vested.

In the other type of plan, a defined benefit plan, the employer must make enough contributions (together with earnings) to provide the retirement benefit promised in the retirement plan. In this type of plan, if you meet the minimum age and years of service requirements to participate in your employer's plan, you are considered covered. It does not matter if you are vested.

The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. The "Pension Plan" box should have a mark in it if you were covered.

References:

• Publication 575, Pensions and Annuity Income
• Tax Topic 410 Pensions and Annuities

The maximum amount an employee can contribute to a 401(k) plan is determined annually. You may be allowed catch up contributions in addition to annual limit, if you are age 50 or older. Refer to "Elective Deferrals" in Publication 525,Taxable and Nontaxable Income. The maximum amount applies to an employee's aggregate pre-tax contributions to a 401(k) plan and 403(b) plan. There are several different limits that apply to a 401(k) plan in addition to the overall contribution limit. These limits, your salary, and the type of 401(k) plan to which you are contributing may limit your 401(k) contributions to a lesser amount.

The rules for retirement plans are complex. Your plan administrator should have written information about your particular plan that explains these limitations as well as other regulations that apply.

For further information, refer to Tax Topic 424, 401(k) plans.

References:

• Publication 525, Taxable and Nontaxable Income
• Publication 575, Pension and Annuity Income
• Publication 560, Retirement Plans for Small Business
• Tax Topic 424, 401(k) plans

Elective deferrals into a section 401(k) plan are limited to $15,000 for 2006, except that employees age 50 or over may be eligible to make an additional contribution of up to $5,000.00 in 2006. Note that certain elective deferrals made by a participant (including elective deferrals to simplified employee pensions, IRC 403(b) plans and IRC 501 (c)(18) plans) are included in applying the limit. See Tax Topic 424, 401(k) plans, for more information.

References:

• Tax Topic 424, 401(k) plans

A 403(b) plan is a tax-sheltered annuity arrangement for employees of public schools and certain tax-exempt organizations. Section 403(b) has a special nondiscrimination rule which imposes a universal availability requirement generally providing that all employees of the eligible employer must be permitted to elect to have at least $200.00 a year elective deferrals contributed on their behalf if any employee of the employer may elect to make a section 403(b) elective deferral. For more information, see Internal Revenue Code sections 403(b)(1)(D), and 403(b)(12)(A)(ii).

References:

• Publication 571, Tax Sheltered Annuity Plans 403(b) Plans
• IRS Code Sec. 402(g) (1)

There are no forms to report a Roth contribution. The financial institution, which is the trustee of your Roth IRA, will send you information on the amount in your Roth IRA. They will also send the information to the Internal Revenue Service. Use Form 8606 (PDF), Nondeductible IRAs, if you made a nondeductible contribution to a traditional IRA; converted from a traditional IRA, a SEP, or Simple IRA to a Roth IRA, received a distribution from a traditional IRA, a SEP, or a Simple IRA and made nondeductible contributions to a traditional IRA, or received a distribution from a Roth or traditional IRA.

References:

• Publication 590, Individual Retirement Arrangements (IRAs)
• Form 8606 (PDF), Nondeductible IRAs
• Tax Topic 428, Roth IRA Distributions

Yes, you can make a contribution to a SEP-IRA and a Roth IRA. See Chapter 2 of Publication 590, Individual Retirement Arrangements (IRAs), for the requirements to contribute to a SEP and a Roth IRA. However, your SEP IRA contribution and Roth IRA contribution can not be made to the same IRA.

References:

• Publication 590, Individual Retirement Arrangements (IRAs)
• Publication 560, Retirement Plans for Small Business
• Tax Topic 451, Individual Retirement Arrangements (IRAs)

Yes, if they meet certain requirements. A SEP-IRA is considered a retirement plan, so the Adjusted Gross Income (AGI) limitations have to be considered. If your AGI, which is computed after the SEP contribution, is in excess of those limits, then the IRA contribution that you make would be nondeductible. The information on the AGI limits is in Publication 590, Individual Retirement Arrangements (IRAs), in the section, How Much Can I Deduct? Your SEP IRA Contribution and Traditional IRA Contribution may both be made to your SEP IRA.

References:

• Publication 590, Individual Retirement Arrangements (IRAs)
• Tax Topic 451, Individual retirement arrangements (IRAs)

If both you and your spouse work and both have taxable compensation, each of you can contribute to a separate traditional IRA. The amount that you can contribute to each IRA is subject to a limit. Refer to chapter 1 of Publication 590 for more information on these limits. Contributions can be made even if one spouse has little or no compensation, if you file a joint return. You can make a contribution to a separate IRA for your nonworking spouse if you file a joint return. Your total contribution to both your IRA and the spousal IRA for this year is limited by certain factors such as your taxable compensation, contributions to a traditional or Roth IRA and your age.

For additional information, refer to Tax Topic 451, Individual Retirement Arrangements (IRAs), or Publication 590, Individual Retirement Arrangements (IRAs).

References:

• Publication 590, Individual Retirement Arrangements (IRAs)
• Tax Topic 451, Individual Retirement Arrangements (IRAs)

No. A 401(k) plan is not an IRA. However, the amount you contributed is not included as income in box 1 of your W-2 form so you don't pay tax on it in the year you make the contribution. For more information, refer to Tax Topic 424, 401(k) Plans, Publication 575, Pension and Annuity Income, or Publication 560, Retirement Plans for Small Business.

References:

• Publication 575, Pension and Annuity Income
• Publication 560, Retirement Plans for Small Business (SEP, Simple, and Qualified Plans)
• Tax Topic 424, 401(k) Plans

You are treated as covered by an employer sponsored retirement plan if you are covered for any part of the taxable year. The amount you can deduct will be determined by your Modified Adjusted Gross Income (MAGI) and filing status. For specific information refer to Publication 590, Individual Retirement Arrangements (IRAs).

References:

• Publication 590, Individual Retirement Arrangements (IRAs)
• Tax Topic 451, Individual Retirement Arrangements (IRAs)