I am trying to recharacterize a Roth IRA contribution from 2020 to SEP IRA, and expected it to be deductible.
Turbotax Home & Business reports: "MAGI is over the limit for IRA deductions. To deduct a contribution, you can't have a MAGI over $124000, while being covered by a retirement plan at work."
The SEP IRA is for a self-employed real estate agent, not previously covered by a "plan at work". The IRS seems to set the limit for full deduction at MAGI of $196000 (not $124000) for a spouse that is not covered by a Retirement Plan at Work:
2020 IRA Contribution and Deduction Limits Effect of Modified AGI on Deductible Contributions if You are NOT Covered by a Retirement Plan at Work | Internal Re...
Is this an error in Turbotax, or am I misunderstanding the rules?
How do I make this recharacterization deductible?
