Hi,
dmertz’s interpretation is correct, and we are experiencing the same issue described in the original post. TurboTax 2025 Deluxe does not allow any deductible IRA contribution for the non-working spouse when the working spouse is covered by a workplace retirement plan, even though our MAGI is well below $246,000 for married filing jointly.
It appears that the software is incorrectly treating both spouses as covered by a workplace retirement plan and therefore applying the lower MAGI phase-out range of $126,000–$146,000 for married filing jointly.
How does TurboTax plan to address this software issue, and what should we do in the meantime? Any guidance from TurboTax would be greatly appreciated. Thank you.
