topic How do I tell TurboTax Online my spouse doesn't have a 401k at work? in Deductions & credits

How do I tell TurboTax Online my spouse doesn't have a 401k at work?

SoloWriter — Sun, 02 Feb 2025 17:29:18 GMT

Our filing status is MFJ. We both make W2 and 1099 income.

I have a 401k at my day job, but my spouse does not.

We both participate in our Solo 401k for our side consulting business with our 1099 income.

When I go to enter an IRA contribution for my spouse, TurboTax tells me it doesn't qualify for a deduction because our MAGI is higher than $143,000. That is the limit for someone who is covered by a retirement plan at work (i.e., me.)

However, the limit if you're not covered by a retirement plan at work, but your spouse is, is $230,000.

Why won't TurboTax Online allow me to take this deduction? Is the Solo 401k getting in the way?

If we can take this deduction, how do I get TurboTax Online to apply this higher limit?

Re: How do I tell TurboTax Online my spouse doesn't have a 401k at work?

SoloWriter — Thu, 06 Feb 2025 13:41:28 GMT

@Here, please.

Re: How do I tell TurboTax Online my spouse doesn't have a 401k at work?

dmertz — Thu, 06 Feb 2025 18:58:13 GMT

The additions for you and your spouse to the solo 401(k) make you and your spouse both covered by a workplace retirement plan for the year.

Re: How do I tell TurboTax Online my spouse doesn't have a 401k at work?

SoloWriter — Thu, 06 Feb 2025 21:59:08 GMT

Thank you, that's what I've been coming to realize, appreciate the confirmation and reply.