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Returning Member
posted Jan 29, 2020 2:46:20 PM

Contribution to IRA

MY wife and I are both retired, no wages, salary, etc.   If we contribute new money to an IRA do we have to report that money on our taxes? 

0 7 1632
7 Replies
Level 15
Jan 29, 2020 2:51:01 PM

You can’t contribute to an IRA if you had no earned income. 

Returning Member
Jan 29, 2020 2:54:51 PM

Okay, if I can't open an IRA, can I contribute to am IRA I already have?

Level 15
Jan 29, 2020 2:55:20 PM

No. 

Returning Member
Jan 29, 2020 2:57:53 PM

Let me restate this question.  If I contribute to an IRA 'must' that contribution be reported or can I just leave it out?

Returning Member
Jan 29, 2020 3:00:10 PM

I'm sorry but your answer of 'no' does that refer to must I report it or to just leave it out?

Level 15
Jan 29, 2020 3:13:53 PM

You cannot make a contribution to an IRA whether it’s new or old if you did not have earned income. If you did erroneously contribute you must withdraw it. 

Level 15
Jan 29, 2020 4:01:31 PM

If you made such a contribution and do not obtain a return of this excess contribution before the due date of your tax return, you must report the contribution on Form 5329 as an excess contribution and pay the excess-contribution penalty.