I switched jobs in Nov. 2022. The former employer provided 401(K), and the new employer (a small firm) required 1 year waiting period for 401(K) plan participation and can only enroll in January and July each year. After I resigned from the former employer, I rolled over my 401(K) fund to a rollover IRA account at a brokerage firm, and my 401(K) account at the former employer should be closed (I thought).
In 2024, I received two w-2s for 2023.
Despite I didn't work for the former employer in 2023 at all, I got w-2 with:
- $85 in box 1,
- D and $15 in box 12a.
- check mark in box 13 Retirement Plan.
This information in box 13 indicated that the former employer still provided me 401(K) plan for 2023 plan year. As the result of this W-2 form, all my traditional IRA contribution for 2023 is not tax deductible and I have to pay additional taxes instead of a refund.
I don't know why I have received this W-2 and I will find out. I am sure I will not be allowed to continue to contribute to the 401(K) plan once I leave the company simply because 401(K) is a payroll deduction plan and I was no longer on the company payroll in 2023. Is it correct for a former employer to claim that it provided retirement plan to me (by check the Retirement Plan box on a W-2) for 2023 when I already left the work place in 2022? How can I fix this problem?
