I have a partnership with my wife. She does not share in the profits, only I do. She has a full tie job where she is coved by a 401K plan at work. I contribute each year to my SEP based on my earnings. I always have done my own taxes on Turbo Tax but this yer I had an odd situation with my Partnership and took it to a tax preparer. I decided to have them prepare my personal too. Our combined income is $174,000 with her W2 and my earnings from the partnership. Our AGI is $153,700. My wife contributed $6500 to her Traditional IRA and I am now being told she cannot take contribute that much because of our income. I was also told she has to remove it or I we will pay a penalty. Can you tell me if this is correct? I do not understand why.
