Retired Jan 17 w/ W2 wages of 10646. SW said I could make IRA Tax Deduct contrib up to 10646. However SW allows only 1240. AGI 115860 taxable 80545. What is correct?

[surfsmith]

The SW said my max IRA contribution was $10,646 ($6,500 for me $4,146 spouse). I entered $3000 for me and $3000 for my spouse.  When I tried to complete the contribution in the SW by answering all the questions it told me I could only contribute $620 for each or a total of $1,240. . I tried other amounts but only $1,240 is allowed. Even when I enter 1240 at the end of the 1040 review, it says I can make more IRA tax deductible contributions . . . ? What is allowed? Anything over the 1240 is not allowed by the SW and whatever is over is not “TAX DEDUCTABLE”. 

[MinhT]

Were you covered by a retirement pan at work in 2017 (box 13 of your W-2 is checked)?

[surfsmith]

Yes bow 13 checked. I have 2 pension plans and wife has 2.

[MinhT · Accepted solution]

As you are covered by a retirement plan at work and your MAGI is over $99,000, your IRA deduction is reduced. The reduction is automatically calculated by TurboTax.

Please read this IRS document for more information:

https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-i...