IRA 2021 contribution not allowed due to excess income. Why??

[Iampapaace]

Our 2021 IRA contribution was not deductible due to income just over the limit. Is that a problem with the IRS?

Thank you

[DanaB27]

Yes, your deductions to the traditional IRA may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Please see IRA deduction limits for details.

TurboTax will create Form 8606 with a basis on line 14 this will be important to enter when you are taking distributions or making more nondeductible traditional IRA contributions.

[DanaB27]

Yes, your deductions to the traditional IRA may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Please see IRA deduction limits for details.

TurboTax will create Form 8606 with a basis on line 14 this will be important to enter when you are taking distributions or making more nondeductible traditional IRA contributions.