1099 R and IRA deduction

Forum|Forum|6 years ago
March 3, 2020
7 replies
59 views

The amount I entered from 1099 R for a direct rollover is included as income and now according to TT I am not eligible for any IRA contribution deduction. It does say I can make a non deductible contribution. Why is this counted as income and not allowing me the deduction to an IRA?

Thank you

ColeenD3

Level 15

Were you covered by a pension plan at work? Are you age 70 1/2? Please see this link for more information. IRA deduction

ChrisMcCAuthor

Level 2

according to the link we qualify. Our income is lower then the limit. We are both collect Social Security now. I have a very small retirement plan. My wife was employed during the first few months of 2019

dmertz

Level 15

Being "income" simply means that the trans action is reportable on your tax return. If the rollover was nontaxable, this nontaxable income has no effect on your AGI and no effect on your eligibility to deduct a traditional IRA contribution.

ChrisMcCAuthor

Level 2

OK so I do have income from employment but TT says I am not eligible for a IRA deduction. It still says I can make a nondeductible contribution. Why am I no eligible for the deduction?

macuser_22

Alumni - Champ

@ChrisMcC wrote:

OK so I do have income from employment but TT says I am not eligible for a IRA deduction. It still says I can make a nondeductible contribution. Why am I no eligible for the deduction?

See this IRS article for MAGI limits when covered by a retirement plan at work for deduction limits.
https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits

**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.**

ColeenD3

Level 15

Were you covered by a pension plan at work? If so, your deduction may be limited. Which means you might only be able to make a non-deductible contribution.