Can we take an addition deduction if I retired in 2018 after making the maximum contribution (including makeup) of $24,500 to my employer's 401K plan? We are married, filing jointly. My wife was not employed in 2018 and did not/has not made a retirement contribution to any kind of IRA for 2018. TurboTax is advising that we can contribute another $13K ($6500 each) and gain a tax deduction for doing so. Can we take an additional deduction this way?
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The amounts you deferred from your paycheck to your Employer's Retirement Plans doesn't count toward your "personal" IRA contributions that you make directly.
Whether or not you and your spouse can make a Deductible IRA Contribution depends on your joint Modified Adjusted Gross Income (MAGI).
You have indicated that you are covered by a plan, but your spouse is not. The ability for her to make a Deductible IRA Contribution phases out when your joint MAGI is between $189,001-$199,000.
The ability for you to make a Deductible IRA Contribution phases out when your MAGI (Modified Adjusted Gross Income) is between $101,000 and $121,000.
So if your MAGI is below $121,000 and you have earned income of at least $13,000, you are eligible to make a $6,500 contribution for both you and your spouse. You have until 4/15/19 to make your 2018 Contribution.
You can check out this IRS link for more about these limitations: IRA Limits.
For additional details, you check out the TurboTax FAQ below: https://ttlc.intuit.com/replies/3301534
The amounts you deferred from your paycheck to your Employer's Retirement Plans doesn't count toward your "personal" IRA contributions that you make directly.
Whether or not you and your spouse can make a Deductible IRA Contribution depends on your joint Modified Adjusted Gross Income (MAGI).
You have indicated that you are covered by a plan, but your spouse is not. The ability for her to make a Deductible IRA Contribution phases out when your joint MAGI is between $189,001-$199,000.
The ability for you to make a Deductible IRA Contribution phases out when your MAGI (Modified Adjusted Gross Income) is between $101,000 and $121,000.
So if your MAGI is below $121,000 and you have earned income of at least $13,000, you are eligible to make a $6,500 contribution for both you and your spouse. You have until 4/15/19 to make your 2018 Contribution.
You can check out this IRS link for more about these limitations: IRA Limits.
For additional details, you check out the TurboTax FAQ below: https://ttlc.intuit.com/replies/3301534
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