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Level 1

Can I take the $6500 deduction for a traditional IRA contribution if no money was added to my SEP IRA during the year?

My employer set up a SEP but has not consistently contributed to it; 2017 additions were zero. TurboTax asks if I am covered by a SEP IRA and I check "Yes". No deduction is then allowed for a contribution to a traditional IRA. Do I check the "No" box instead?

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Accepted Solutions
Level 1

Can I take the $6500 deduction for a traditional IRA contribution if no money was added to my SEP IRA during the year?

Check "NO" You’re only covered by an employer retirement plan for a tax year if your employer (or your spouse’s employer) has a:

IRA-based plan (SEP, SARSEP or SIMPLE IRA plan) and you had an amount contributed to your IRA for the plan year that ends with or within the tax year

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5 Replies
Level 1

Can I take the $6500 deduction for a traditional IRA contribution if no money was added to my SEP IRA during the year?

Do you have W2 Box 13 Retirement plan checked?
Level 1

Can I take the $6500 deduction for a traditional IRA contribution if no money was added to my SEP IRA during the year?

It is not checked.
Level 1

Can I take the $6500 deduction for a traditional IRA contribution if no money was added to my SEP IRA during the year?

Perfect. The answer still stands. Good Luck!
Level 1

Can I take the $6500 deduction for a traditional IRA contribution if no money was added to my SEP IRA during the year?

Thank you very much.
Level 1

Can I take the $6500 deduction for a traditional IRA contribution if no money was added to my SEP IRA during the year?

Check "NO" You’re only covered by an employer retirement plan for a tax year if your employer (or your spouse’s employer) has a:

IRA-based plan (SEP, SARSEP or SIMPLE IRA plan) and you had an amount contributed to your IRA for the plan year that ends with or within the tax year

View solution in original post