I am self-employed and receive non employment compensation. My wife is retired as am I, therefore neither are covered by a plan at work. We each maintain a traditional IRA. We are married and file JOINTLY. Per the subject line, TTax 2022 is limiting my IRA contribution. The IRS has a nice chart found at 2022 IRA Contribution and Deduction Limits Effect of Modified AGI on Deductible Contributions if You are NOT Covered by a Retirement Plan at Work | Internal Revenue Service (irs.gov)
When attempting to apply a contribution (less than the max allowed) and with neither the wife nor I listed as having a plan at work, or a W-2 that could trigger a limitation, it limits me. Why? What am I missing, or is TTax 2022 in error?
Specific to within that chart are the criteria that apply to my specific condition (at least I read it as such) and it says for the years 2021 and 2022:
If Your Filing Status Is... And Your Modified AGI Is... Then You Can Take...
| married filing jointly or separately with a spouse who is not covered by a plan at work | any amount | a full deduction up to the amount of your contribution limit. |
The chart you looked at is for determining whether a permissible IRA contribution is deductible or not. It seems that you are instead limited on how much you are eligible to contribute. Do you have sufficient net earnings from self-employment to support the IRA contributions? Net earnings are your net profit from self-employment minus the deductible portion of self-employment taxes. If the sum of the IRA contributions for you and your spouse exceed net earnings, one or both of you indeed have an excess contribution.