topic Re: Traditional IRA contribution Question in Retirement tax questions

Traditional IRA contribution Question

srbowthegov17 — Tue, 14 Jul 2020 15:44:28 GMT

Hello I contributed to my wifes traditional IRA for tax year 2019, but made all the contributions in 2020 as I have done in the past. Turbo Tax is stating in the IRA Contributions worksheet that this cannot be greater than zero when I run the review. I have done it this way before without error. So a little confused here. I am also recharacterizing to a roth this year. Any input would be appreciated.

Re: Traditional IRA contribution Question

srbowthegov17 — Tue, 14 Jul 2020 15:56:21 GMT

If I do not recharacterize to a roth in turbo tax this error goes away. It seems to be a bug in the software in my opinion. I contributed this year for 2019 but it states this should be zero. I enter in the traditional IRA contribution first then do the recharacterization to a roth for all of it. Not sure if TT thinks I should have zero contribution after the recharacterization.

Re: Traditional IRA contribution Question

dmertz — Tue, 14 Jul 2020 16:36:41 GMT

What does recharacterizing to Roth have to do with the traditional IRA contribution? Did you wife recharacterize the traditional IRA contribution? Was the intent to instead do a Roth conversion?

Does the modified AGI for the purpose of a Roth IRA contribution exceed the limit where eligibility for your wife to contribute to a Roth IRA drops to zero?