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11066: 1040 - EF Message 5200


1040 Individual Data Entry

Why do I receive EF Message 5200 on a joint return when the retirement plan is for the spouse, but the IRA contribution is for the taxpayer?

1040 - EF Message 5200 states:

CONFLICTING DATA ENTRY: You have included deductible IRA contributions on screen 4, Adjustments, but this taxpayer is covered by a pension plan and the deduction for some of the IRA contributions might be limited. Take the following steps:
    1. Return to screen 4 and delete the "Deductible IRA" entry.
    2. Click the "Form 8606" link on screen 4 to open screen 8606.
    3. Enter the IRA contributions.
With the IRA contributions entered on screen 8606, the program can calculate the deduction limitations (if applicable) on the IRA Deduction Worksheet ("WKS 8606 IRS Deductions" in View/Print mode).

Under the circumstances in this return, even though different spouses are responsible for the IRA contribution and the retirement plan, the IRA contribution could be limited. You have to enter the IRA contribution on screen 8606 in order for the software to calculate the limitation.

Once the contribution amount has been entered on screen 8606, the software will generate a Wks 8606 IRA Deduction page in view mode. This worksheet mirrors the worksheet provided in the 8606 instructions, page 3.

Additional information on this limitation may be found in the 8606 Instructions, and in Publication 590-A, pg 12.


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