Yes, your assumptions are off. I just retired so for 2017, my earned income is low and so is my MAGI. My MAGI is well below $100k for joint and well within the limit to be able to make the max contribution.
In this case, I’m only concerned that the earned income was lower than our contributions. So, you’re right that when our MAGI is high and close to the upper limit, even though the earned income may be low, we have to look at the amount that the 1099-R may increase the MAGI.
At any rate, TurboTax should tel, us if that maximum contribution is exceeded after entering the 1099-R information.
