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