That's asked in the retirement contribution section, since the answer has an impact on the deductibility of Traditional IRA contributions.
You can get there by following this pathway: Federal Taxes > Deductions & Credits > Retirement & Investments > Traditional and Roth IRA Contributions.
Follow the prompts, entering your contribution amount and responding to the various questions. Then you'll come to the screen that says Retirement Plan Coverage? and you can give your answer.
That's asked in the retirement contribution section, since the answer has an impact on the deductibility of Traditional IRA contributions.
You can get there by following this pathway: Federal Taxes > Deductions & Credits > Retirement & Investments > Traditional and Roth IRA Contributions.
Follow the prompts, entering your contribution amount and responding to the various questions. Then you'll come to the screen that says Retirement Plan Coverage? and you can give your answer.
I found it Other Tax Situations > Retirement Savings > IRA Calculator tool
There are 2 previous responses to this issue. I don't get the question or see the place to correct this. I am NOT part of an employer sponsored retirement plan and it keeps saying that I am. Help!
It is probably marked on your W-2. Even if you did not contribute, if you were eligible to participate in a plan, you are considered covered by an employer plan. Look in Box 13 - if there is a checkmark on the Form and in TurboTax, then you are considered covered by a retirement plan. If your employer mismarked that box, then you should request a corrected W-2 as the IRS has the same copy you do. @GarysGirl
In addition to box 13 on your W-2, you can indicate that you were not covered by an employer retirement plan in the IRA contribution part of the interview. To do this, please follow these steps:
I don't get the question: Retirement Plan Coverage?
After I enter the amount and click Continue, I get: Tell us if you switched or "recharacterized" any of the $2000 traditional IRA contribution for 2020 over to a Roth IRA contribution? Yes or No
@GarysGirl Think of IRA recharacterizations as a set of special rules allowing you to change your mind about the type of your current year IRA contribution.
So if you didn't change your traditional IRA to a Roth IRA, you would say NO to this question.
Click this link for more info on IRA Conversions, Recharacterizations, Rollovers.
I answered No. Then I get: Tell us if you contributed more money to your IRA than was allowed in 2019 or any previous year. I answered No. Then: Any Nondeductible contributions to your IRA? I answered No and Continue. Then it tells me that only part of my contribution is deductible since I am covered by an employer sponsored plan. But I am NOT.
Check your W2 entry to see if you had checked that you were covered by a retirement plan at work. Also check the distribution code in Box 12 to see if there is a code D with an amount listed.
YAAAY!!! Thank you! My W-2 doesn't have anything in box 13 but when it auto loaded, it checked box 13. I fixed it. Thank you so much!
I am having the same problem trying to get TT to recognize that I am not covered by an employer retirement plan. I am a part time W-2 employee and I have a SEP associated with my sole proprietorship. I don't get a screen asking if I am covered by an employer plan in the retirement section, I deleted my W-2 and removed my SEP contribution and I still get the message that my income is too high to contribute to a IRA while being covered by a retirement plan at work. Thanks in advance for any insight you may have.
It could be due to your spouse. If you are married, you will need to check box 13 of your spouse's W-2 to determine if she is covered by a plan. If she is and your AGI is over $206,000, your income would be too high to gain any deductibility from an IRA contribution.
@stuart13 wrote:
I am having the same problem trying to get TT to recognize that I am not covered by an employer retirement plan. I am a part time W-2 employee and I have a SEP associated with my sole proprietorship. I don't get a screen asking if I am covered by an employer plan in the retirement section, I deleted my W-2 and removed my SEP contribution and I still get the message that my income is too high to contribute to a IRA while being covered by a retirement plan at work. Thanks in advance for any insight you may have.
A SEP *is* an employee retirement plan. (Simplified Employee Pension Plan -SEP)
Please double check your W-2 entry if box 13 retirement plan is checked or box 12 has an entry indicating an retirement plan.
Helped by the turbotax support: I had checked 401(k) and Roth 401(k) under Less Common Business Situations>Self employed retirement. It doesn't go there.
None of the above solutions work for me.
I am self-employed, not covered by a retirement (but wife is). Our AGI is well below the $198,000, so I believe I should be getting the full deduction for my IRA (7000).
In the IRA questionnaire, the page saying "Retirement Plan Coverage" does not come up.
Instead, it tells me that both me and my wife are covered by a retirement plan at work, and that I can only deduct $1930.
In TurboTax, how do I change whether I am covered by a retirement plan at work? I have no W-2 form, and no SEP (I only have traditional IRA).
@michtrack wrote:
None of the above solutions work for me.
I am self-employed, not covered by a retirement (but wife is). Our AGI is well below the $198,000, so I believe I should be getting the full deduction for my IRA (7000).
In the IRA questionnaire, the page saying "Retirement Plan Coverage" does not come up.
Instead, it tells me that both me and my wife are covered by a retirement plan at work, and that I can only deduct $1930.
In TurboTax, how do I change whether I am covered by a retirement plan at work? I have no W-2 form, and no SEP (I only have traditional IRA).
Covered by a retirement plan at work is usually indicated by box 13 on your W-2.
Make sure the W-2 (s) were entered for the correct spouse.
Make sure that the IRA contribution is for the correct spouse.
Check your W-2 box 12 also.
TurboTax makes that determination if any of the following are true:
1) Box 13 (retirement plan) on your (or spouses) W-2 is checked,
2) Box 12 on your (or spouses) W-2 contains codes D, E, F, S, or AA/
3) You answered “yes” to the “Are you covered by a Retirement Plan at work” in the interview.
4) You have a self-employed retirement plan.
Look at the "IRA Contribution Worksheet" line 10 and see if it is checked for you and the contribution is in the correct column for Taxpayer and Spouse.
Thanks. Box 13 on my wife's W-2 is checked. I have no W-2s. If I'm reading you right, that determines TurboTax saying that I am covered by a retirement plan and therefore don't get the full deduction. Where I'm confused is why that doesn't match what the IRS is saying:
<<Couples who are married filing jointly can take the full IRA deduction if neither spouse is covered by a retirement plan at work.2 If one spouse participates in a plan, then these income restrictions apply:
I know you can't offer tax advice, but is this a glitch in the TurboTax program? (FYI--our AGI is 114K).
Like I said above - be sure the W-2's were entered for the correct spouse. Something was entered incorrectly.
And Look at the "IRA Contribution Worksheet" line 10 and see if it is checked for you and the contribution is in the correct column for Taxpayer and Spouse.
I found it there too. My W-2 had no entries in Box 13, but Turbotax had indicated I was covered by a retirement plan at work somehow. Once I clicked it off, I was able to make a traditional IRA contribution and save on taxes.
In a prior version of Turbotax (February 2022), I found that option there. However, with the recent update, I don't get the option to specify that I am not covered by a retirement plan at work. Looks like the option may have been programmed out. Are you still able to get to that question?