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June 1, 2019
Solved

Why does my refund DECREASE when I add a IRA deduction for Wayne?

  • June 1, 2019
  • 1 reply
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see screenshot attached
Best answer by dmertz

That screen appears to be a truly bizarre way of indicating that Wayne's proposed contribution (or maybe Shirley's contribution) is an excess contribution, perhaps because one of you was age 70½ or older in 2016.  The 6% penalty for an excess $6,500 contribution is $390.

1 reply

dmertzAnswer
Employee
June 1, 2019

That screen appears to be a truly bizarre way of indicating that Wayne's proposed contribution (or maybe Shirley's contribution) is an excess contribution, perhaps because one of you was age 70½ or older in 2016.  The 6% penalty for an excess $6,500 contribution is $390.

June 1, 2019
Great answer.  Yes, Wayne is 71.  Guess I'm surprised the software did not catch that and not recommend the IRA??