The TurboTax Worksheet calculates and limits the contribution to a percent of earnings even if the taxpayer is single. My understanding of IRS rules is that a taxpayer in the phase-out AGI range is limited to a percent of overall contribution amount, not earnings. The net effect of the Worksheet calculation for a single taxpayer when the earnings are less than the reduced contribution amount is to limit the contribution to a percent of earnings. Is that correct under IRS rules?
