That is the limit for a spouses contribution who is not covered by a retirement plan at work. You said that your 401(k) was maxed out so the $98K limit applies to you. Your spouse, if not covered by a retirement plan at any time in 2016, might be able to deduct based on the spouses limit.
You can try and see what it would do. Enter it as a contribution. You can always return to the IRA contribution interview, un-check the Traditional IRA box and click on continue to delete the contribution.
Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.
OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
