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taeling
New Member

Turbotax says I am not permitted to contribute to Trad IRA b/c I have earned income of $0. I have income (W2 block 1 $100K). Why am I getting this message?

 
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2 Replies
MaryK4
Employee Tax Expert

Turbotax says I am not permitted to contribute to Trad IRA b/c I have earned income of $0. I have income (W2 block 1 $100K). Why am I getting this message?

Your deduction may be limited if you (or your spouse, if you are married) are covered by a retirement plan at work and your income exceeds certain levels, see IRA Deduction Limits.

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dmertz
Level 15

Turbotax says I am not permitted to contribute to Trad IRA b/c I have earned income of $0. I have income (W2 block 1 $100K). Why am I getting this message?

Does box 11 of the W-2 have the same amount as is in box 1?  If so, it's income from a nonqualified deferred compensation plan and does not support an IRA contribution.

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