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New Member
posted Apr 10, 2025 7:36:34 AM

turbotax error: deduction for traditional ira contributions is being reduced via the $123k MAGI and not the $230k MAGI for married/joint but spouse has no work retirement

turbo tax seems to be applying the rule for both of us covered by work retirement plans even though only one of us has a retirement plan. the IRS rules clearly state if there is only one work retirement plan then the MAGI limit for for deduction is $230k which we are under.

0 3 1159
3 Replies
Expert Alumni
Apr 10, 2025 7:49:06 AM

Check your spouse's W-2 to see if the box 'covered by a retirement plan' is checked.  If it is checked, but no contributions have been made, it still qualifies as being covered by a retirement plan at work.

 

However, the box does not have to be explicitly checked in order for TurboTax to determine that someone is covered by a retirement plan at work.  Take a look at items reported in box 12 of the W-2.  If there are deferrals into a retirement plan reported in box 12, then you are also considered to be covered by a retirement plan.

New Member
Apr 10, 2025 7:52:00 AM

we only have one w2. spouse that is not covered by a work retirement plan has no w2 uploaded.

Level 15
Apr 10, 2025 4:31:41 PM

Make sure that you have marked the boxes in TurboTax that indicate that the W-2 belongs to you and not to your spouse.