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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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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