Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 1, 2019 12:33:51 AM

TT not permitting IRA contribution, stating I was covered by 401K. This is incorrect, as I received severance and was ineligible for 401K. How do I correct TT?

0 5 1058
1 Best answer
Level 15
Jun 1, 2019 12:33:57 AM

Make sure the W-2 for the retirement is entered as you got it, and if the retirement box is not marked such as your case you are good to go.

5 Replies
Level 15
Jun 1, 2019 12:33:53 AM

The W-2 you got for the severance has Retirement marked.  You need to see if the employer would give you a new one without it marked.

Level 15
Jun 1, 2019 12:33:53 AM

Otherwise no deduction

New Member
Jun 1, 2019 12:33:54 AM

Thank you Michael.  I was able to find and correct the error.  The W-2 my former employer sent me did not have the retirement plan box checked, so I unchecked the box in TT and the IRA deduction was applied.  Thanks again.

Level 15
Jun 1, 2019 12:33:55 AM

Great news, I am going to post a very brief answer below just so others know this is taken care of.

Level 15
Jun 1, 2019 12:33:57 AM

Make sure the W-2 for the retirement is entered as you got it, and if the retirement box is not marked such as your case you are good to go.