Marie Posted March 26, 2009 Report Share Posted March 26, 2009 My clients are over 701/2, but are putting money into a ROTH IRA. When I go to the IRA worksheet, it shows the limits to be 0, but I read that it doesn't matter how old, as long as there is earned income, and they can put in $5000 each. I don't think I have to put in their contributions since they aren't deductible anyway, but I was wondering if the worksheet just isn't working, or I havent put something in right? Anyone else looked at this? Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 26, 2009 Report Share Posted March 26, 2009 My clients are over 701/2, but are putting money into a ROTH IRA. When I go to the IRA worksheet, it shows the limits to be 0, but I read that it doesn't matter how old, as long as there is earned income, and they can put in $5000 each. I don't think I have to put in their contributions since they aren't deductible anyway, but I was wondering if the worksheet just isn't working, or I havent put something in right? Anyone else looked at this? Hmm. Was their modified AGI over $160,000? All I can think of. One other thought - not sure if they would qualify for Retirement Savers Credit, but if they do, you want to be able to enter the contributions. Quote Link to comment Share on other sites More sharing options...
Marie Posted March 26, 2009 Author Report Share Posted March 26, 2009 Gross income is under the amount, and they are drawing out of IRA's and some other retirements so credit isn't available. They are allright putting money in a ROTH, aren't they, even though I can't make the worksheet work? Would that keep the efile from going through? Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 26, 2009 Report Share Posted March 26, 2009 Gross income is under the amount, and they are drawing out of IRA's and some other retirements so credit isn't available. They are allright putting money in a ROTH, aren't they, even though I can't make the worksheet work? Would that keep the efile from going through? Is their earned income from "work"? Passive income (interest, dividends, rentals, etc.) doesn't count as compensation from work. If you have TheTaxBook, try page 13-9. I think I missed the MAGI up there (it's 159,000), but that's not your issue. Quote Link to comment Share on other sites More sharing options...
Marie Posted March 26, 2009 Author Report Share Posted March 26, 2009 No, husband has wages of 30,000, so there should be no issue on that. I was just surprised the software didn't show availability of putting in a ROTH. I know it's not deductible, no credit available, but I do believe it is allowable. Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 26, 2009 Report Share Posted March 26, 2009 No, husband has wages of 30,000, so there should be no issue on that. I was just surprised the software didn't show availability of putting in a ROTH. I know it's not deductible, no credit available, but I do believe it is allowable. Have you updated lately? Maybe duplicate the return or something. I know I have gotten two blue messages, saying "tp has more than $1800 in investment earnings and may need to file 8615" on people who have no investment earnings whatsover. It is irritating, and when I told ATX, I got this: "Well, blue warnings don't prevent e-file." Well, big whoop! That is not the point. It makes me wonder what other little things are screwy, you know? Sorry about the little rant. Quote Link to comment Share on other sites More sharing options...
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