TurboTax Deluxe 2020 tells me that combined MAGI of 144K is too much to allow the IRA contribution. Is TurboTax wrong?
The following is a portion of a table found at:
https://www.irs.gov/retirement-plans/plan-participant-employee/2020-ira-contribution-and-deduction-l...
If Your Filing Status Is... | And Your Modified AGI Is... | Then You Can Take... |
married filing jointly with a spouse who is covered by a plan at work | $196,000 or less | a full deduction up to the amount of your contribution limit. |
I am covered by a plan at work. She is not. Our combined MAGI is less than 196,000. She is over 50, so shouldn't she be able to contribute up to $7000.
Yet, here is what TurboTax says:
Marie’s MAGI is $144,175 (it’s not, that’s our combined MAGI), which puts it over the limit for IRA deductions. To deduct a contribution, your can’t have a MAGI over $124,000 while being covered by retirement plan at work (she’s not, I am)
