topic Re: Ira reduced? why / in Retirement tax questions

Ira reduced? why /

bill57 — Sun, 24 May 2020 22:11:46 GMT

max allowed 401k 24k..put in 3594.00...ira max allowed 7k turbo tax is reducing it to 4850.00 automaticly ?

Re: Ira reduced? why /

macuser_22 — Sun, 24 May 2020 22:32:51 GMT

What type of IRA, Traditional or Roth? If the amount of contribution is not allowed then it either exceeds your taxable compensation or is phased out because of the MAGI limits. The IRA contribution interview tells you the reason - what does it say?

Re: Ira reduced? why /

bill57 — Sun, 24 May 2020 23:58:19 GMT

traditional ira... i dont know what interview you speak of or where its at..thank you

Re: Ira reduced? why /

macuser_22 — Mon, 25 May 2020 00:07:52 GMT

I guess I do not understand you question. If you did not enter the contribution then how do you know that it is disallowed? Where did you enter it that tells you than only $4,850 is allowed?

(The only way a Traditional IRA contribution would be disallowed would be if you did not have at least $7,000 of taxable compensation.)

You did not try to enter your 401(k) contribution as a IRA did you? A 401(K) is NOT an IRA and is only entered in box 12 on yiur W-2 - nowhere else.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

Re: Ira reduced? why /

bill57 — Mon, 25 May 2020 00:16:47 GMT

ok i do my taxes and them apply the ira amount to reduce the amount i owe. i owe becuase i claim 4 dependents thru the year and one at tax time, so i put in 7k to ira cont. box, hit done button and it comes up at a reduced contribution amount in the box showing the contribution amount

Re: Ira reduced? why /

macuser_22 — Mon, 25 May 2020 00:29:31 GMT

Again where you enter it will tell you why on the screen that says it is reduced. It should tell you the reason.

It is telling you that is is not deductible or that you have an excess contribution?

For example:

Re: Ira reduced? why /

macuser_22 — Mon, 25 May 2020 00:33:48 GMT

@bill57 wrote:

ok i do my taxes and them apply the ira amount to reduce the amount i owe. i owe becuase i claim 4 dependents thru the year and one at tax time, so i put in 7k to ira cont. box, hit done button and it comes up at a reduced contribution amount in the box showing the contribution amount

You say you have a 401(k) then the limit you see might be the deduction limit when covered by a retirement plan at work.

See this IRS link for Traditional IRA deduction limits when covered by a retirement plan at work.
https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits

If you're covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction.

If Your Filing Status Is...	And Your Modified AGI Is...	Then You Can Take...
single or head of household	$65,000 or less	a full deduction up to the amount of your contribution limit.
	more than $65,000 but less than $75,000	a partial deduction.
	$75,000 or more	no deduction.
married filing jointly or qualifying widow(er)	$104,000 or less	a full deduction up to the amount of your contribution limit.
	more than $104,000 but less than $124,000	a partial deduction.
	$124,000 or more	no deduction.
married filing separately	less than $10,000	a partial deduction.
married filing separately	$10,000 or more	no deduction.

Re: Ira reduced? why /

bill57 — Mon, 25 May 2020 03:34:19 GMT

thank you for your help.. I will go back thru n see if I goofed..thank you