topic Re: IRA in Get your taxes done using TurboTax

IRA

fasteddie577 — Mon, 23 Nov 2020 13:16:36 GMT

I am 63 years old and took my social security early. Can I still open an IRA to defer some taxes? Thank you.

Re: IRA

DoninGA — Mon, 23 Nov 2020 13:20:21 GMT

You can open an IRA if you have taxable compensation from working.

Go to this IRS website for IRA information - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

Re: IRA

Critter-3 — Mon, 23 Nov 2020 13:22:01 GMT

Yes if you still have wages or self employment income ... SS benefits do not count as qualifying earned income.

Re: IRA

fasteddie577 — Mon, 23 Nov 2020 13:36:27 GMT

My income besides SS is my pension and interest income. Does this mean I cannot open an IRA?

Re: IRA

fasteddie577 — Mon, 23 Nov 2020 13:36:58 GMT

Thank you.

Re: IRA

fasteddie577 — Mon, 23 Nov 2020 13:39:25 GMT

I forgot to mention that I did earn $400 for a job I did during the year.

Re: IRA

Critter-3 — Mon, 23 Nov 2020 13:41:13 GMT

The most you can contribute to all of your traditional and Roth IRAs is the smaller of:

For 2020, $6,000, or $7,000 if you’re age 50 or older by the end of the year; or
your taxable compensation for the year.

(Taxable compensation is generally wages that you worked for - W-2 or net self-employed income minus the deducible part of the SE tax, but can include commissions, certain alimony and separate maintenance, and nontaxable combat pay ).

See IRS Pub 590A "What is compensation" for details:
https://www.irs.gov/publications/p590a#en_US_2018_publink1000230355

Re: IRA

fasteddie577 — Mon, 23 Nov 2020 13:42:44 GMT

Thank you.