Thanks for helping. I figured out what happened. We have been living almost exclusively on Social Security and Traditional IRA Distributions (mine, not hers) which apparently is not counted as income with regard to calculating her rollover IRA allowed contribution amount. The only income used for determining eligibility was income from skin care direct sales (about $1500 gross for the year). We will have to claw the $8k back to avoid 6% annual penalty from the IRS.
