Great question!!!
There could be a few reasons.
1. Do you have a 401K or 403B at your work?
2. If you do, was your income over the limit?
https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras#:~:text=How%20much%20can%2....
Within this above link is this link:
https://www.irs.gov/retirement-plans/ira-deduction-limits
Modified AGI limit for traditional IRA contributions. For 2022, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:
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More than $109,000 but less than $129,000 for a married couple filing a joint return or a qualifying surviving spouse,
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More than $68,000 but less than $78,000 for a single individual or head of household, or
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Less than $10,000 for a married individual filing a separate return.
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If you are limited, then it is best to pull that investment out. It is not advise to keep track of nondeductible contributions.
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How do I remove excess contributions from my IRA?
If you've contributed too much to your IRA for a given year, you'll need to contact your bank or investment company to request the withdrawal of the excess IRA contributions. Depending on when you discover the excess, you may be able to remove the excess IRA contributions and avoid penalty taxes.
I sure hope this has been helpful.
If you reply back, I will try to keep an eye open to assist further.
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Katie S.
Katherine S 63
