Income too high to deduct an IRA Contribution

Forum|Forum|3 years ago
February 21, 2023
1 reply
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I received notification when entering tax information that my MAGI was over the 129,000 while being covered by a retirement plan at work to deduct my contribution. Am I still allowed to make this contribution and not go over any limits.

Thanks

Best answer by MinhT1

You are allowed a contribution of up $6,000 ($7,000 if you are 50 or older) to a Traditional IRA.

As your MAGI exceeds the limit fixed by the IRS (see this document), you are still allowed to make the contribution but your contribution is not deductible.

You also need to file form 8606 to keep track of your nondeductible IRA contributions.

Please read this TurboTax document for more information.

MinhT1Answer

You are allowed a contribution of up $6,000 ($7,000 if you are 50 or older) to a Traditional IRA.

As your MAGI exceeds the limit fixed by the IRS (see this document), you are still allowed to make the contribution but your contribution is not deductible.

You also need to file form 8606 to keep track of your nondeductible IRA contributions.

Please read this TurboTax document for more information.

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