@khuber wrote:
I filed my taxes with turbo tax and followed the prompts that said I could take part of my pension income and contribute to an IRA. I did this but have now been told by my investment advisor that my IRA contribution will not be deductible. Is this section on turbo tax not accurate?
Thanks.
Pension income is not eligible to fund an IRA.
The maximum IRA contributions for 2020 is $6,000, or $7,000 if you’re age 50 or older by the end of the year; or your taxable compensation for the year which ever is less.
(Taxable compensation is generally wages that you worked for - W-2 or net self-employed income minus the deductible part of the SE tax, but can include commissions, certain alimony and separate maintenance, and nontaxable combat pay ).
See IRS Pub 590A "What is compensation" for details:
https://www.irs.gov/publications/p590a#en_US_2020_publink1000230355
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
