Help with Taxes - 401k and IRA?

Forum|Forum|5 years ago
March 15, 2021
1 reply
17 views

Friends:

Can you lend a helping hand with someone who is confused with the tax laws. My married brother worked for 4 months of the year with a company who gave him a 401k during that time. He prematurely left his job to focus on his distract kids remoting into school from home. Is my brother still eligible for an IRA for the months he didn't have a 401k even though his wife has a full time job with her own 401k? Where is he suppose to start on TurboTax to make this work?

Thank you,

Stickyglue

Best answer by DanaB27

Yes, he can contribute to a traditional or Roth IRA as long as there is enough taxable compensation to make the contribution.

To enter IRA contributions in TurboTax please follow these steps:

Login to your TurboTax Account
Click on "Search" on the top right and type “IRA contributions”
Click on “Jump to IRA contributions"

The total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:

$6,000 ($7,000 if you're age 50 or older), or
If less, your taxable compensation for the year

Roth IRA contributions will not be deductible and might be limited based on your filing status and income. Please see 2020 - Amount of Roth IRA Contributions You Can Make for 2020 for details.

Traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels.

Please see IRA deduction limits for details. If you had a retirement plan at work for one day then you you are consider to have been covered for the whole year.

DanaB27

Answer

Employee Tax Expert

Yes, he can contribute to a traditional or Roth IRA as long as there is enough taxable compensation to make the contribution.

To enter IRA contributions in TurboTax please follow these steps:

Login to your TurboTax Account
Click on "Search" on the top right and type “IRA contributions”
Click on “Jump to IRA contributions"

The total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:

$6,000 ($7,000 if you're age 50 or older), or
If less, your taxable compensation for the year

Traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels.

Please see IRA deduction limits for details. If you had a retirement plan at work for one day then you you are consider to have been covered for the whole year.

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