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Level 2
Mar 23, 2021 9:53 PM UTC
Question

IRA Contributions

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.

Thank you

    9 replies

    VolvoGirl
    Level 15
    Mar 23, 2021 9:55 PM UTC

    Yes if you have earned income from W2 wages or a Net Profit from self employment.  

    pclark3Author
    Level 2
    Mar 23, 2021 9:59 PM UTC

    WOW. Thank you that was fast.

     

    I did not earn any money from a W2 this year.

    However, the money was earned in prior years, if that make sense.

     

    Thank you

    pclark3Author
    Level 2
    Mar 23, 2021 10:58 PM UTC

    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).


    Thank you

    Line 1 contains the amount I contributed. 

    I should be good correct???

    Thank you very much