The retirement plan box on the W-2 is not in box 17. It's grouped together with other boxes in box 13.
Receiving a 1099-R from pensions does not mean that you are participating in a retirement program. It's the box 13 mark on your wife's W-2 that designates participation or not. See IRS link Are you covered by an Employer's Retirement Plan? Employer contributions count towards participation.
If your wife has the the box 13 checked, then there are IRA deduction limits that can take place. See this IRA link: IRA deduction limits if you are covered by a retirement plan at work
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
