Traditional IRA Contribution from a retiree.

[ChiHoang]

My client 69 years old, retired, collects social security benefits and pension. He contributes $8,000 to the traditional IRA. I thought it should not be tax deductible, I input in ProSeries Basic and it takes as a deduction. Do I do something wrong ? Or is it an error in the software ? 

[Norman2001]

If he doesn't have earned income, then it would  not be deductible. 

[rbynaker]

If there's no earned income on the return then the IRA contribution is limited to $0.  Anything beyond that is an excess contribution subject to penalty each year until corrected.

Is there a spouse with earned income?  I'd be surprised if ProSeries doesn't at least throw a diagnostic message in this situation.

[ChiHoang]

The spouse has earned income so her IRA deduction is OK. But I'm surprised that her husband does not have earned income and ProSeries basic still deducts his IRA contribution from his unearned income such as social security benefits and pension. How do I fix this situation ? And make it show up as an excess contribution. 

[BobKamman]

I have several retired clients who contribute to their IRA based on spouse's income.  The problem is not with the software, but with your knowledge.  

[Just-Lisa-Now-]

Spousal IRA, I have several that only 1 spouse works, both spouses can put into an IRA and get the deduction.

[ChiHoang]

Bob, No one knows and remembers everything. Thank you for your comments.