☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Jun 1, 2019 10:30:18 AM

Why is Turbo Tax suggesting an IRA contribution (2018) for my wife of $714 when Fidelity shows the income limit to open an IRA is below what we are reporting for 2018?

Turbo Tax indicates we will save $192 if she makes a $714 contribution to a traditional IRA for last year.  Is our retirement income treated differently as far as income limits for IRA eligibility?

0 1 661
1 Best answer
Level 15
Jun 1, 2019 10:30:19 AM

You have to have earned income to o an IRA, so it can;t be retirement income.

So if your wife has at least $714 of earned income and is below 70 1/2 years old.

See this link for more detail on the income limitations.  https://www.irs.gov/retirement-plans/plan-participant-employee/2018-ira-contribution-and-deduction-l...


1 Replies
Level 15
Jun 1, 2019 10:30:19 AM

You have to have earned income to o an IRA, so it can;t be retirement income.

So if your wife has at least $714 of earned income and is below 70 1/2 years old.

See this link for more detail on the income limitations.  https://www.irs.gov/retirement-plans/plan-participant-employee/2018-ira-contribution-and-deduction-l...