Can you take money from a savings account and make a traditional IRA Contribution to reduce AGI?
The money is not from any retirement fund, annuity or Social Security.
It has to be 2020 taxable compensation - W-2 or net self-employed income. (1040 line 1 and/or schedule 1 line 3 minus line 14 & 15).
What income is on line 1 if you had no W-2?
Enter the IRA contribution in the interview and the last screen should tell you if you qualify or if it is an excess contribution.
Enter IRA contributions here:
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.
OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.
We did have a W2 for 2020.
I neglected to tell you that. Apologies.
Having the W2 showing earnings for 2020 is all I needed.
I just needed to be in the guidelines allowed for annual IRA contribution and the W2 needed to have at least that amount.
Thank you very much!!!
Glad it helped you.