hgtc
Level 5

Thank you all for your input.

W-2 is marked "covered", but, employer did not have SEP contribution for tax year 2019.  And, the employee did contribute his IRA, $7,000 by 4/15/2020.

Reading IRS note, it sounds that employer should not mark "covered" in the W-2. Lacerte will not allow this $7,000 IRA deduction.  Should my client ask employer to correct 2019 W-2 for this (if he still wants to have IRA deduction)?

0 Cheers