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SoloWriter
Returning Member

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

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? 

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3 Replies
SoloWriter
Returning Member

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

@Here, please. 

dmertz
Level 15

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

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.

SoloWriter
Returning Member

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

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

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