Hi,
My husband and I are 50+, filing jointly, with a small business, and we made the $7000 limit contributions to our traditional IRAs for/in 2021.
TT says:
"Deductible IRA contributions cannot exceed $6000 ($7000 if you're age 50 or older) and must be equal to or less than your earned income. One or both of these apply to you, which means you also have a non-deductible excess contribution of $6162."
and tells us we have a penalty.
As mentioned earlier, we are over age 50 and the $7000 is less than our individual incomes. Neither of the above reasons apply, so we shouldn't be incurring the penalty, correct? Stumped on how/where the excess is coming from since we contributed the correct amounts for years and didn't have issues previously.
