Where do I enter in Turbotax that I am not covered by employer sponsored retirement plan in TurboTax

[avsteele]

@DanaB27  Thank you, no idea where that worksheet came from!

There is a defunct SEP, but it is not contributed to by my employer for years, which is is why the checkbox is not there on my W-2. I am simply making a personal contribution to a SEP. I deleted that worksheet and it seems to work fine now.

Thanks!

[LARAF]

I can not get into tax tools and it tried to "override the X in line which is false in my case- Single, Self-Employed get income from Independent contractor work. All of my Sep IRA should be deductable. but this X is the problem and I can not remove it. HELP!

[PatriciaV]

@LARAF Please clarify what version of TurboTax you are using, which will influence any possible solution.

[MX-CPA]

How is this different in TT2021?  I am in the same position this year as last, but the pathways are all different and I cannot find the answer.

[JohnB5677]

@MX-CPA  This is a long thread.  What are you trying to do?

[Tr221]

Looks like this problem is still existing on TT2022.

I am retired, no current employer and only receive pension from previous ER. My wife works, and is covered by ER’s retirement plan. Per IRS spousal ira section, I am well qualified for deductible 7000.

very interesting that this problem has existed few years back.

[MichaelG81]

Yes, go to Deductions and Credits, then select Retirement/Investments click start by Traditional and Roth IRA Contributions, enter for yourself. 

According to IRS: Spousal IRAs

If you file a joint return, you may be able to contribute to an IRA even if you didn’t have taxable compensation as long as your spouse did. Each spouse can make a contribution up to the current limit; however, the total of your combined contributions can’t be more than the taxable compensation reported on your joint return. See the Kay Bailey Hutchison Spousal IRA Limit in Publication 590-A.

If neither spouse participated in a retirement plan at work, all of your contributions will be deductible.

@Tr221 

[Tr221]

Hi MichaelG81

Thank you for your helpful reply.

I did everything according to your advice and followed TT instructions…. Unfortunately, I still was disqualified for deductible ira contribution according to the spousal ira because I was covered by the retirement at work.
I have been retired for the last 6 years, I have NO W-2, but I don’t know why TT keeps saying that I am covered by the retirement at work. 

I used TOOLS option, then was able to get to see our (married, filing joint returns) IRA contribution worksheets and I noticed that the item “covered by the retirement at work” was marked YES for my spouse (correct) and myself which is incorrect. I deleted these pages and redo the Retirement/Investment… the result is the same, incorrectly, I am STILL covered by the retirement at work…

[VolvoGirl]

Make sure her W2 is entered under her name.  I would delete her W2 and re enter it.  That usually clears things out.  See if any other W2s are listed that might have transferred over and need deleting.  

[Tr221]

Hi DanaB27

My deductible spousal ira contribution was disqualified mainly because I am covered by retirement at work, which is incorrect as I am retiree, no W-2 for the last six years, my spouse is self employed with solo 401K plan.  Per Spousal IRA, we are qualified for deductible traditional IRA… as our MAGI is 187,000.

I tried what you suggested: deleted the ‘ira contribution worksheets’ and re-input data… Unfortunately, the same incorrect result from TT… I checked the ‘ Ira contribution worksheets’ again and noticed that the Box of ‘covered by the retirement at work’: was checked at my column, which was incorrect, and my spouse column, which was correct. I could not un-check my marked box… so I got stuck here did not know what else or how to rectify this problem.

Hope you can help…

Best regards

[VolvoGirl]

@Tr221   The link that Michael posted from the IRS says......You’re covered by an employer retirement plan for a tax year if your employer (or your spouse’s employer) has....

So you are considered covered too.  This link

https://www.irs.gov/retirement-plans/are-you-covered-by-an-employers-retirement-plan 

[Tr221]

The problem is:

Somehow, I could not take spousal deductible traditional IRA contribution as TT kept stating that I could not due to income limit as I am covered by my ER, which was incorrect.

Someone, who replied to my message, suggested that I deleted all W-2 income data section from my spouse, and IRA contribution section previously input and start over again on the wages and IRA contribution section. This time, TT asked the question of whether each spouse is covered by the ER retirement plan, I just answered accordingly… all turned out great.

Hope this will help you on this issue.