ATX IRA Worksheet

[Randall]

My IRA worksheet is showing box checked for participating in an employer plan.  I can uncheck it but I'm wondering why it defaulted that way.  Client receiving Govt pension, both spouses receiving some RR SocSec equivalent.  Client has a Sch C consulting business with high profit.  Both ages under 70.  I'm wondering if the box is checked because it's rolled over that way from several years back when client was still working govt job and was an active participant.  I think I just need to uncheck the box but was curious why this box was checked in the first place.  Maybe the program knows something I don't.

 

[DevM]

Check and see if there is W2 in the return and retirement box is checked.

[Randall]

DevM, thanks.  That was it.  W2 info from several years ago was still in the return.

[Randall]

Now I'm looking at SEP for client.  If he contributes to SEP, he's an active participant and can't make the IRA contribution.  But ATX is showing spouse also as an active participant.  I'm wondering why he can't contribute to a SEP and she contribute to her traditional IRA based on his earnings.

[Randall]

Nevermind.  Found my answer.  I had the spouse marked in the SEP worksheet.

[Jack from Ohio]

DevM, thanks.  That was it.  W2 info from several years ago was still in the return.

Always remove all unused W-2, 1099 (all varieties) and other forms each year.  Keeps things clean, makes the file size smaller, allows the return to open faster, and will not cause problems like you described.