Roth IRA, Traditional IRA, Union Pension

[Guest larzini]

Hi,

I'm new to the board, and I'm having trouble with determining some definition when it comes to retirement planning. Things like "active participant" and 'employer plan". I prepare income taxes.

Anyway I have a client who is 47, and makes about $140,000/yr and files Head of Household. The client is a union electrician and has a union pension. But the W-2 form he receives from his employer shows no contribution to any retirement plan, nor does it have the "retirement plan" box checked.

If he has no contributions is he considered an "active participant", and if the pension is from the union and not the employer paying wages, is this still considered an "employer plan"?

My client would like contribute to an IRA. His income would disqualify him from a Roth IRA, so I'm wondering if it's possible to contribute to a traditional IRA and take the deduction. I wouldn't see a point in making a non-deductible contribution to a traditional IRA.

Any guidance would be appreciated. I kind of have a feeling that there's no option here and the union plan would be considered an employer plan. But I'm not yet convinced beyond a shadow of a doubt.

Thank you.