What Does Covered By A Retirement Plan Mean? 
Being covered by a `` retirement plan '' means that perhaps your employer had a 401k plan and you contribute to the retirment plan and the employer can `` match '' a percentage = like 3 % . There used to be alot of companies that had a `` defined benefit plan '' . Your benefit under a `` defined benefit plan '' was caluculated each year by the actuarial firm administering the plan . This type of retirement plan is rare . If you contribute to an IRA each year when you file your tax returns the tax preparer calculates how much of your contribution is allowed to deducted on your tax returns based on current tax law . Being covered by a Retirement Plan means that within the definition of the tax code you have contributed to a plan that is recognized by the IRS as a `` retirement plan . 