topic Re: Self Employed traditional IRA problem in Retirement tax questions

Self Employed traditional IRA problem

Mango NC — Wed, 02 Apr 2025 00:34:32 GMT

I'm entering my traditional IRA retirement contributions for myself and my wife (Married filing jointly). We are each allowed to contribute up to $8,000 each as both of us are above 50 years old. Yet when I enter the $8000 amount for each of us TurboTax says my wife has an excess contribution and must withdraw the excess or face a penalty. What gives? This does not make sense. We have enough income to qualify.

Re: Self Employed traditional IRA problem

ThomasM125 — Wed, 02 Apr 2025 01:00:18 GMT

Your maximum contribution can be limited if you have a retirement plan at work, per this excerpt from an IRS article:

Also, you have to have earned income to qualify, pension or investment income does not count.

not quite the correct answer

Mango NC — Wed, 02 Apr 2025 01:08:06 GMT

Thanks of the reply. However this does not solve the problem. 1-I'm self employed, there is no work retirement plan. 2- modified AGI will be less than $123,000.00. We are entitled to contribute $8,000 each, but the program isn't allowing it. It says we have to withdraw the excess or face a penalty. What excess???

Re: not quite the correct answer

KeshaH — Wed, 02 Apr 2025 01:17:46 GMT

If you'd like, we can look at your return and see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account and have your amended return open,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

Click on Online in the top menu of TurboTax Desktop for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all other states that are included on the return.