Pension money IRA

Forum|Forum|7 years ago
June 1, 2019
3 replies
38 views

I receive monthly pension benifits. The software asks me what I did with the money. I chose to put half of it into an IRA account to lower my taxes. I spoke with an accountant who told me I cannot do that. I told him turbo tax says I can but he still said no. He said I am not rolling it over from an existing IRA. No, I just wanted to put half of my pension money into an IRA to reduce my taxes. Please Advise??

TurboTax Deluxe Windows

VolvoGirl

Level 15

Sorry you must have misunderstood Turbo Tax. You can not put your pension into a IRA. That would be a rollover. After you get the pension check you can use the money to put into a IRA IF IF IF you have other earned income from working or a Net Profit from self employment income to qualify to make a new IRA contribution. But directly from your pension would be a rollover and not allowed.

rv46Author

Level 2

I have other income with a full time job but my pension income put me over the threshold to reduce my taxes by putting money into an IRA. I only wanted to use my pension money only for an IRA. I guess the answer is no....

MinhT1

Level 15

You cannot contribute to a Traditional IRA to lower your tax unless you have earned income and are aged below 70 1/2.

If your only income is from your monthly pension, then you do not have earned income and cannot contribute to a Traditional IRA.

Please read this TurboTax FAQ for more information:

https://ttlc.intuit.com/replies/3302154

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"