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Contribution to retirement

Karen229 — Wed, 15 Jan 2025 15:51:09 GMT

I had $1350 in earned income in 2024. All the rest is SS, 401k, and interest. Can I contribute the $1350 to retirement to reduce my MAGI?? I need the reduction for IRMMA purposes. Is $1350 all I can contribute??

Re: Contribution to retirement

Bsch4477 — Wed, 15 Jan 2025 16:05:04 GMT

Your contribution is limited to your earned income.

Re: Contribution to retirement

VolvoGirl — Wed, 15 Jan 2025 16:06:59 GMT

Is your earned income from W2 wages or 1099NEC self employment? If you have self-employment income you can only contribute up to your net profit reduced by the deduction allowed for the ER portion of your self-employment taxes. The 1/2 SE Tax amount will be on Schedule 1 line 15 which goes to 1040 line 10.

See IRS publication 590A for IRA contributions
https://www.irs.gov/pub/irs-pdf/p590a.pdf

Re: Contribution to retirement

Karen229 — Wed, 15 Jan 2025 16:50:02 GMT

Thanks for the response. It will be a w2.

Do I just call my broker and make a contribution?? Will I get a form from him to put on my taxes to reduce the MAGI??

Re: Contribution to retirement

DaveF1006 — Mon, 20 Jan 2025 23:59:42 GMT

Yes, call your broker to make the contribution. Typically you may receive a form proving you made the contribution but not always. The IRS will take your word that you made this contribution before the due date of your return.