I have $305,000 in taxable income for 2021. Only $66,000 comes from wages (I am a federal retired annuitant and under the rules I am not able to contribute to a retirement plan at work in this status). However a substantial portion of the difference between the $305,000 and the $66,000 comes from various earned defined benefit retirement plans such as retired military, and retired civil service, social security, and my spouses defined benefit retirement plan, plus annuities and investments. I was surprised that Turbo Tax recommended that I make, and deduct from my tax liability, a max traditional IRA contribution of $14,000 for my spouse and I (both 70) with that amount of taxable income. Here is the question that I want to make sure I am clear on. Since my w2 wages are sufficient to cover the $14,000 contribution, and I am not covered by a retirement plan in my current employment, am I eligible to make and deduct that $14,000 contribution despite my $305,000 taxable income?
