turbotax error: deduction for traditional ira contributions is being reduced via the $123k MAGI and not the $230k MAGI for married/joint but spouse has no work retirement

Forum|Forum|11 months ago
April 10, 2025
1 reply
0 views

turbo tax seems to be applying the rule for both of us covered by work retirement plans even though only one of us has a retirement plan. the IRS rules clearly state if there is only one work retirement plan then the MAGI limit for for deduction is $230k which we are under.

AnnetteB6

Check your spouse's W-2 to see if the box 'covered by a retirement plan' is checked. If it is checked, but no contributions have been made, it still qualifies as being covered by a retirement plan at work.

However, the box does not have to be explicitly checked in order for TurboTax to determine that someone is covered by a retirement plan at work. Take a look at items reported in box 12 of the W-2. If there are deferrals into a retirement plan reported in box 12, then you are also considered to be covered by a retirement plan.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"