TT states I cannot make a non-deductible IRA contribution

[Smith16]

Hello,

I am using Turbo Tax Home and Business. I am self employed and have a Solo 401k plan. I have no employees and file as sgl. I made the max contribution to my Solo 401k plan. 

However that should not preclude me from also making a non-deductible contribution to an IRA. TT is stating that I cannot do so. That I am ineligible. 

There is no IRS rule that states that I cannot make a non-deductible contribution. And TT does in fact ask if one has made any non-deductible contributions and if one wants to trace them. Can anyone explain why TT may not be allowing for it this year? 

[MaryK4]

Check that you have taxable compensation for the year.

[dmertz]

The sum of Schedule 1 lines 15, 16 and 20 is not permitted to excess net profit from self employment.  I suspect that the sum of lines 15 and 16 already equals net profit, leaving nothing to support a contribution to an IRA.

[Smith16]

Schedule 1 is the IRS Schedule 1? Correct? 

When you say "net profit" which line are your referring to? Tell me the line not the term. 

Line 15 on the IRS schedule 1 is the "deduction for self employment tax" 

Line 16 on IRS schedule 1 is the total SE plan contributions 

Line 20 is the "deduction" for an IRA. 

Assuming we are tracking all of the above; the answer is NO. That is not correct. I am not talking about a deductible IRA. I mentioned I cannot make a tax deductible IRA due to income. But I have the right to make a non-deductible IRA and track the basis as such. Then only paying taxes when withdrawn from the account at retirement.

It is correct that I cannot do a ROTH contribution due to income above the limit. 

[Smith16]

* then only paying taxes on the gain not the original contribution

[dmertz]

For a sole proprietor, net profit is the amount on Schedule C line 31, which propagates to Schedule 1 line 3.

The only reason that you would not be eligible to make a nondeductible traditional IRA contribution is that you have no compensation to support the contribution.  If you have no supporting compensation, you also are not eligible to make a Roth IRA contribution.  If on Schedule 1 the sum of lines 15 and 16 equals line 3, you have no compensation to support any kind of IRA contribution and are not eligible to make any kind of IRA contribution.

[Smith16]

And I repeat. That is NOT the case. 

I made a non-deductible IRA last year and my income this year is significantly more. So that is simply wrong. 

It may be a problem with the program that it believes that one only wants to make a "deductible" IRA