When I was going through the Federal Review in TurboTax for Mac, it prompted me about an IRA contribution. It allowed me to enter it and get a tax deduction despite my AGI being well above the $214K limit for married filing jointly. It allowed me to put in $7000 (over 50) and $6000 for my wife. My employer doesn't offer a retirement plan, so could that be why, or is TurboTax wrong on this?
I thought maybe it was looking at my taxable income after all my itemized deductions, which is under the limit, but according to my research, it uses MAGI to compute it, which, again, is well over.
If neither you nor your spouse is covered by a retirement plan at work and neither of you contributed to a self-employed retirement plan, then your entire Traditional IRA contribution is deductible. There is no phase-out range when there is no other retirement plan involved.
To learn more, take a look at the following TurboTax help article:
How much of my Traditional IRA contribution is deductible in 2022?
If neither you nor your spouse is covered by a retirement plan at work and neither of you contributed to a self-employed retirement plan, then your entire Traditional IRA contribution is deductible. There is no phase-out range when there is no other retirement plan involved.
To learn more, take a look at the following TurboTax help article:
How much of my Traditional IRA contribution is deductible in 2022?
Thank you. Can I invest money into an existing Traditional IRA account (rollover from former 401K) or would I have to open new IRAs. We only have Roth IRAs individually, otherwise.
You would not need to open new IRA accounts unless you wanted to do so in order to keep the money separated. Just be sure to keep track of any non-deductible contributions that you may make in the future to the Traditional IRA account(s).