Tradidional IRA vs 401k

A 401k is a retirement plan at work. The limit on employee elective deferrals is $23,000 for 2024. Please see Retirement topics - 401(k) and profit-sharing plan contribution limits for details. The contributions to a 401k will be listed on your W in box 12 and you do not need to enter anything else in TurboTax.

A Traditional IRA is a retirement account outside of work. For 2024, the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:

• $7,000 ($8,000 if you're age 50 or older), or
• If less, your taxable compensation for the year (IRS)

Your traditional IRA contributions may be tax-deductible but the deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Please see IRA deduction limits for details.

You will enter IRA contributions in the IRA contribution section under Deductions & Credits:

1. Click on "Search" on the top right and type “IRA contributions” 
2. Click on “Jump to IRA contributions"
3. Select “traditional IRA”