Marshall
Level 1
I have a 61 yr old taxpayer who participates in a retirement plan at her job, withdrew from a traditional IRA in 2019, and also wants to contribute the max $7,000 to a traditional IRA for 2019 before 4/15/2020. I calculated the IRA Deduction Worksheet and she is unable to claim an IRA Deduction for the $7,000 due to her modified AGI being higher than the $74,000 single filer limitation for 2019. So I then tried to see if she could benefit from a reduction in the Taxable IRA Distributions since she would have both - Distributions & Contributions to a traditional IRA for 2019. When I completed the worksheet for the IRA Contributions, I included the $7,000 on line 1 for traditional IRA contributions made for 2019 including those made through 4/15/2020. I checked box 10 that she was covered by a retirement plan at work and I also included the $7,000 on line 11 where it says to enter any contributions in the total traditional IRA contributions that were made during 1/1/20-4/15/20. Line 11 prevented any of the amounts to continue to 'flow' over to the Taxable IRA Distribution Worksheet and allow any of her $7,000 contribution to be Nontaxable. If I deleted the amount on Line 11, it allowed amounts to 'flow' over to the Taxable IRA Distribution Worksheet and a portion of her $7,000 contribution is Nontaxable and is deducted from her 2019 Distribution that she received and reduced her tax liability. I researched the IRS website as well as ProSeries Help and I cannot find where it states that the DATE the contribution is made has to be within the calendar year of 2019. Why wouldn't the contribution that this taxpayer makes during 1/1/20-4/15/20 that is for the 2019 tax year be able to be used in this instance? I have pulled Publication 590-A and 590-B and looked over the examples and not seeing anything that relates to this case. I was wondering if it is something to do with this software? Or maybe I am just overlooking something?? I really appreciate any help!
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