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New Member
posted Jun 6, 2019 7:35:34 AM

IRS shows that military pension is excluded from MAGI for IRA limits. How to I get TurboTax to reflect this?

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11 Replies
Level 15
Jun 6, 2019 7:35:36 AM

can you add a comment where you see that the pension income is excluded from MAGI so I can do some research on this.

Level 15
Jun 6, 2019 7:35:38 AM

The Modified AGI worksheet in IRS Publication 590-A does not reference anything concerning military pensions as being excluded from the MAGI calculation for an IRA - <a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p590a#en_US_2016_publink100025076">https://www.irs.gov/publications/p590a#en_US_2016_publink100025076</a>

New Member
Jun 6, 2019 7:35:38 AM

Is "military pension" not considered "pension?" 590-A indicates that compensation for purposes of an IRA does not include income from pensions.

New Member
Jun 6, 2019 7:35:39 AM

590-A Table 1-1 shows that compensation for purposes of an IRA excludes pensions

Level 15
Jun 6, 2019 7:35:41 AM

The worksheet for MAGI does not indicate pensions at all.

New Member
Jun 6, 2019 7:35:42 AM

Understood. He's misreading table 1.1

New Member
Jun 6, 2019 7:35:44 AM

I don't understand.  Does table 1.1 not indicate that pension is excluded from AGI for IRA purposes?

Level 15
Jun 6, 2019 7:35:45 AM

Table 1 shows it is not compensation, so it not considered earned income in taking an IRA deduction.  It is not referring to the MAGI limits in table 1.

New Member
Jun 6, 2019 7:35:47 AM

OK thanks, so for the purposes of determining how much of my contribution is deductible I must include my military pension income?

Level 15
Jun 6, 2019 7:35:48 AM

yes, it will be part of the MAGI computation.  I am putting as answer below so we can close this question out as answered.

Level 15
Jun 6, 2019 7:35:50 AM

Yes, Military pension will be part of the MAGI computation.  I am putting as answer below so we can close this question out as answered.

Thank you for your service and happy we could clarify this for you.