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My IRA contribution should be nondeductible (AGI/MAGI higher than limit). Why doesn't TT calculate this? How do I fix it?

My IRA contribution should be nondeductible (AGI/MAGI higher than limit). Why doesn't TT calculate this? How do I fix it?

 

Instead, TT makes a deduction.

 

Shouldn't TT calculate on its own that it's nondeductible?  (I think I've found the reason why it's not -- my 8606 is not getting populated with my AGI etc.  So irritating!)

 

Even if it doesn't, there is no prompt asking me if THIS YEAR's contribution is nondeductible. 

 

I'm on desktop if that matters.

 

Right now, the only solution I can see is to manually override on the worksheet (changing "deductible contribution" to 0 and changing "nondeductible contribution" to $6k)

 

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1 Reply
DanaB27
Expert Alumni

My IRA contribution should be nondeductible (AGI/MAGI higher than limit). Why doesn't TT calculate this? How do I fix it?

Yes, your traditional IRA deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Please see IRA deduction limits for details.

 

If you have a retirement plan at work and are above these limits then please verify that you answered that you have a retirement plan at work during the IRA contribution interview if your W-2 box 13 isn't checked.

 

If you are in the phaseout range then only part of your contribution will be automatically made nondeductible and you get a choice to make the rest of the contribution nondeductible.

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