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Level 1
March 13, 2022
Question

Turbotax 401k Joint contribution limit

  • March 13, 2022
  • 1 reply
  • 15 views

I have an employer sponsored 401k, my wife is unemployed, we file jointly, and are both over 50.  I understand the 401k contribution limit is $14k/year (2021) in this case regardless if both spouses work or not.   When I enter the contributions to the 401K as coming solely from me I'm limited to $7k.  When I spread the contributions evenly between my wife and I, we're allowed the $14k limit. 

  As we are filing  jointly, is  spreading the contribution between us the the proper way to reflect the 401k contribution?  Otherwise, how can raise the contribution ton the $14k limit?

  The problem is not the deduction (that I don't qualify for) it's that TurboTax is telling me I've  made excess contributions.  I think I should be able to contribute up to $14k.

    1 reply

    Alumni - Champ
    March 13, 2022

    I think you are confusing 401(k) plans with IRA's.  You cannot add your wife to your 401(k).  Are you asking  about an Individual Retirement account (IRA)?