AnnetteB6
Employee Tax Expert

Retirement tax questions

If you want to report your contribution as non-deductible, the steps you outlined are correct.  To verify this, take a look at Form 8606 generated as part of your return and make sure that line 1 shows the amount that you contributed to the Traditional IRA.

 

Putting money into the Traditional IRA from your savings account does not necessarily make it a non-deductible contribution.  The income you reported on your tax return, your filing status, and whether you are covered by a retirement plan at your job are all factors to determine whether your contribution can be deductible if you wish.  Making it a deductible contribution can reduce your taxes, but it will make the future distributions from the account taxable.  

 

If you expect to convert the Traditional IRA to a Roth IRA down the road, then making the contribution non-deductible is the better choice.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post