Pension money IRA

[rv46]

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??

[VolvoGirl]

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.

[rv46]

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....

[MinhT]

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