Hello!
Filing for 2025 as Married - Separate due to pending divorce. MAGI is well under IRA max for contributions at $53K. I have a 403b thru employer. W-2 Box 13 has no entries. 403 MN appears in Box 14 and research tells me the number in that box is my 403b contribution. That amount added to Box 1 amount adds up to my state taxable compensation so that all seems to make sense.
Turbo Tax will not allow me to enter a contribution to Traditional IRA to reduce taxable income. As soon as I answer "Yes" to "Are covered by a retirement plan at work?" the contribution is disallowed. Same thing happens if I answer "No" but on the next page TT asks the same questions about my spouse and I answer in the affirmative. Apparently I have to provide spouse's info since we were still married on Dec 31, 2025.
Based on what I can find, IRS allows contributions to both my employer's 403b (up to $23,500) and to an individual IRA ( up to $7,000).
Why is Turbo Tax disallowing my IRA contribution? It is adding Form 8606 Non-Deductible IRAs as soon as I answer "yes" to me or my spose having an employer retirement plan.
