IRA deductibility

Nov 07, 2006 0 Replies

My wife is a musician and worked one day for a non-profit org and earned $100. They sent her a W-2 for 2005 and the retirement box was checked, although I can't imagine how they think she was covered by their plan, since she is a temp worker. I ignored the fact that the box was checked and deducted her IRA contribution on our return, even though our AGI limited the deduction if she were covered by a plan. Will I get in trouble with the IRS for claiming a deduction for an IRA contribution that would not be allowed if she was indeed covered by a plan? Should I get the organization to re-issue the W2 without the box checked? Or is this a non-issue?




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