Retired Dec 2024 but received last paycheck Jan 2025. Am I still eligible for a tax-deductible IRA in 2025

Forum|Forum|7 months ago
February 11, 2026
4 replies
50 views

I retired Dec 2024. My last paycheck was not received until Jan 2025. I received a 2025 W-2. Would i be able to contribute to a 2025 IRA and use as a tax deduction? If so, would the amount need to be less than my 2025 W-2 earnings?

DoninGA

Level 15

If you are age 50 or older you can contribute to an IRA $8,000, or If less, your taxable compensation for the year

DavidD66

Alumni - Intuit

Yes, you are eligible to contribute to an IRA for tax year 2025. Your contribution (and tax deduction) are limited to the amount of earned income for 2025 or the IRA contribution limit - $8,000 if age 50 or older.

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user17708438474Author

Level 2

Thank you!

dmertz

Level 15

The amount in box 1 of the 2025 W-2, minus any amount that might be present in box 11, is compensation that will support an IRA contribution. With no other compensation, the contribution cannot exceed the amount in box 1.