I started a business and my net income was negative. Can I still make an IRA contribution (from my savings) and is it further deductible against my already negative NI?

[DoninGA · Accepted solution]

You must have taxable compensation to contribute to an IRA.  Since you have a net loss from the self-employment you do not have taxable compensation and therefore cannot contribute to an IRA.

[alan-honig]

Thanks DoninGA! As a follow-up, I had taxable compensation from a prior job before starting this business (which exceeds the SE loss). Am I allowed to contribute to an IRA?

[DoninGA]

If you have taxable compensation on your 2017 return from other wages then you can contribute to an IRA.
The IRA contribution limit is $5,500 if under age 50 or the amount of your compensation if it less than the limit.