I am retired (over 65 age) solo self employed and received a 1099-NEC for my service in 2024 tax year. My understanding is I can make a deductible IRA contribution to my existing traditional IRA traditional IRA. I My questions are as follows:
I made ~ $19k in profit after taking all the allowed business expense deductions and taxes. Is there a limit to how much I can contribute to my traditional IRA and take a deduction. Turbotax guided me to the IRA section and showed a max limit of $8k. I just want to make sure:
- I can make deductible contribution to my existing IRA account (I do not have traditional SEP or other retirement accounts set up for my business) ?
- Is the max limit of $8k correct, because somewhere I read the max contribution cannot be more than 25% of the net profit (perhaps that is if you have a business retirement plan) ?
Thanks for your help.
