Question

TT won't allow an IRA contrib based on the having a retirement plan at work. Unfortunately TT is wrong since I didn't have a retirement plan at work in 2019

Forum|Forum|5 years ago
July 15, 2020
1 reply
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Any ideas on a work around?

TurboTax Premier Online

Employee

I suspect that :

1) the retirement plan is x'd in box 13 of your W-2 box if the company has a qualified pension plan, adn you worked for them.

2) Also, the Box 13 "x", is, or should be x'd if you have any contributions to a company retirement plan noted in box 12...either a 401k, or 403b..or several other plan types noted there......even $1 contributed during 2019 , and that qualifies as having a plan at work

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

D

dmertz

Employee

The contribution is allowed, it's the deduction for that contribution that is not allowed.

Critter-3

If you are filing a joint return then your spouse having a retirement plan will also limit the deductibility ...

If *you* are covered by a retirement plan:
https://www.irs.gov/Retirement-Plans/2015-IRA-Deduction-Limits-Effect-of-Modified-AGI-on-Deduction-if-You-Are-Covered-by-a-Retirement-Plan-at-Work

If you are *not* covered but your spouse is:
https://www.irs.gov/Retirement-Plans/2015-IRA-Deduction-Limits-Effect-of-Modified-AGI-on-Deduction-if-You-Are-NOT-Covered-by-a-Retirement-Plan-at-Work

Covered by a retirement plan at work

Make sure the W-2 (s) were entered for the correct spouse. Make sure that the IRA contribution is for the correct spouse. Check your W-2 box 12 also.

TurboTax makes that determination if any of the following are true:

1) Box 13 (retirement plan) on your (or spouses) W-2 is checked,
2) Box 12 on your (or spouses) W-2 contains codes D, E, F, S,or AA.
3) You answered “yes” to the “Are you covered by a Retirement Plan at work” in the interview.
4) You have a self-employed retirement plan.