Retirement tax questions

You can contribute to an IRA up until April 18, 2017 and have it count as a deduction on your 2016 return.

Only contributions to a traditional IRA can be deducted on your return.  For 2016 the most that can be contributed to a traditional IRA is the smaller of:

• $5,500 ($6,500 if you are age 50 or older); or
• your taxable compensation.

You are eligible to contribute to an IRA, regardless of whether you are covered by an employer plan at work, as long as you have earned income and are under age 70-1/2.  If you are covered by an employer plan at work the deductions for the contribution may be lower.  Don't worry -- TurboTax will calculate the deduction for you.

To enter contributions to a Traditional IRA in TurboTax, please follow these steps:

1. Click on Federal Taxes > Deductions & Credits  [In TT Self-Employed:  Personal > Deductions & Credits > I'll choose what I work on].
2. Scroll down to the Retirement and Investments section and click on the Start/Revisit box next to Traditional and Roth IRA Contributions.  [See Screenshot #1, below.]
3. On the Traditional IRA and Roth IRA screen, mark the box for Traditional IRA and click Continue.  [Screenshot #2]
4. On the screen, Did you Contribute to a Traditional IRA?  click the Yes box.  [Screenshot #3]
5. Click the appropriate box on Is This a Repayment of a Retirement Distribution?  [Screenshot #4]
6. On the Tell Us How Much You Contributed screen, enter the amount of your contribution and click Continue.  [Screenshot #5]
7. Continue through the screens, entering the requested information.

For more details on IRAs, please see the following IRS Publications:

• Publication 590-A - Contributions to Individual Retirement Arrangements (IRAs)
• Publication 590-B - Distributions from Individual Retirement Arrangements (IRAs)