IRA contribution - Self employed part year

[David]

TP had W-2 income for first part of year and the W-2 indicates a retirement plan is available.

TP left employer mid year and contributed $3K to his IRA.

The ATX program is treating the $3K as nondeductible. I'm sure the reason is because the W-2 indicates a retirement plan is available.

Isn't the TP allowed a prorated IRA contribution based on being self employed half the year? How do we get the ATX program to allow the IRA contribution?

Thanks.

[David]

BTW, the TP had no 401K contributions through his employer in 2010 - don't know if that matters or not.

[Pacun]

If you tell us how much he made in the whole year, we will be able to logically answer your question.

[grandmabee]

TP had W-2 income for first part of year and the W-2 indicates a retirement plan is available.

TP left employer mid year and contributed $3K to his IRA.

The ATX program is treating the $3K as nondeductible. I'm sure the reason is because the W-2 indicates a retirement plan is available.

Isn't the TP allowed a prorated IRA contribution based on being self employed half the year? How do we get the ATX program to allow the IRA contribution?

Thanks.

you don't prorate the year. he was or was not covered by pension plan that's what it goes by. then of course income level makes a difference but it atx is saying non deductable his income is problaly over limit. if non deductable might want to change it to a roth.

[David]

He had W-2 income of $38K and Sch C profit of $48K. Total AGI with wife's income is $202K.

[Pacun]

He had W-2 income of $38K and Sch C profit of $48K. Total AGI with wife's income is $202K.

Non of them can deduct their IRAs