IRA Contributions with Retirement Plan at work? Taxpayer has a retirement plan. SP had a retirement plan at one of her jobs but did not participate. Her other job ...

[chapguy19]

didn't offer a retirement plan.
Can she deduct an IRA contribution for 2022?
Thank you in advance, Christopher

[Just-Lisa-Now-]

Go to the IRA Contribution worksheet and enter an amount, scroll down the page and it will tell you if they are qualified to make any contribution or not, it will show you if there is excess or if all of it is allowed..

[chapguy19]

I guess the key is if she OR he (MFJ) had a retirement plan at work.  He did so her contribution is non-deductible regardless whether she had one at her work.

Am I interpreting it correctly?

Thanks, C

[sjrcpa]

It also depends on their income. As Lisa said, look at the worksheet.

[chapguy19]

Last year, 2021, the spouse, didn't work for a company with a retirement plan.  The husband did.

The 2021 IRA Contribution worksheet allowed the full IRA contribution by the spouse to be deductible.

In 2022, even if I uncheck all the spouse W-2's retirement boxes, the IRA says that the contribution isn't deductible.  The spouse worked for two companies and one did not offer the retirement plan.

Has the law changed so much from 2021 to 2022?

Thanks, Christopher

[sjrcpa]

How much did their income change from 2021 to 2022?

If ProSeries doesn't give you the IRA deduction computation worksheet, get it from the 1040 instructions and work through it. You're disputing the result but don't indicate you've done the computation yourself.

Also, is it possible you made a mistake on last year?

[Just-Lisa-Now-]

Again, scroll down the IRA Contribution worksheet, it shows the computation, you can walk through the math..

[qbteachmt]

"Has the law changed so much from 2021 to 2022?"

Everyone is pointing you to consider income limitation as the reason you are running into this in the later year, but not the prior year. Or, as pointed out, perhaps the prior year was computed incorrectly. You describe more wages in the 2022 filing, though.

[TaxGuyBill]

It is based on income and if the other spouse had a work retirement plan.  Click the link below, and then click the links near the bottom of that page to see the limits.

https://www.irs.gov/retirement-plans/ira-deduction-limits