☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 14, 2022 12:08:09 PM

IRA Contribution if covered by SEP IRA

I am self employed (sole proprietor) with  a SEP IRA plan, to which I have made the maximum employer contribution for 2021.  My MAGI is not over the current limit, of $105K (married filing jointly), for a full deduction. TurboTax is saying that I can still make a deductible IRA contribution of $7K. Is this correct?

 

TurboTax is also saying that my spouse may also make a deductible contribution to her IRA of $7K, even though she is over age 72, is taking RMDs from her IRA,  and only has SS Retirement income. Is this correct?

0 1 418
1 Replies
Expert Alumni
Mar 14, 2022 12:40:48 PM

Yes, both of those are correct. 

 

In the case of your IRA contributions, there are limitations based on income as to whether it is deductible. If you have entered all of your income and your SEP-IRA contributions in TurboTax, you can rely on the  advice you receive from TurboTax about your deductible IRA contribution. 

 

In the case of your wife's IRA contribution, you can make contributions to a spousal IRA based on your earned income, even when your spouse is over 72. Any required RMDs must be still be taken, but additional contributions are allowed. 

 

Click here to learn more.