topic Re: 2020 Traditional IRA contribution in Get your taxes done using TurboTax

2020 Traditional IRA contribution

lshalsor — Wed, 31 Mar 2021 14:25:17 GMT

My husband is 70-1/2 years old, and has been 70-1/2 for quite a few years. I turned 70-1/2 in 2020. Per the Secure Act, in 2020, it seems my husband is now entitled to make a contribution to his Traditional IRA. He had $13,000 of wages. I had no earned income. Neither of us are covered by an employer funded pension plan at work. I am using Premier to prepare my 2020 return. The program is telling me he is not eligible to make a Traditional IRA contribution. We both have established Traditional IRAs, and would like to make contributions.

My understanding is his employment would entitle us both to a Traditional IRA deduction. The Secure Act lifted the age restriction on Contributing to Traditional IRAs. I do not understand why TurboTax is indicating only I am entitled to a Traditional IRA deduction on our 2020 return. Under the Secure Act, it seems to me he is also eligible. The message I receive in Premier within the IRA calculator is he cannot make a Traditional IRA contribution because he is over 70-1/2.

Thanks for any assistance.

Re: 2020 Traditional IRA contribution

MinhT1 — Wed, 31 Mar 2021 14:39:11 GMT

Yes, the Secure Act now allows contributions to an IRA at any age if you have earned income and are not limited by your MAGI.

You can contribute to a Spousal IRA based on your husband's earned income.

Your husband still have to take RMDs every year (except in 2020 when RMDs are waived).

You have to start taking RMDs when your turn 72.

Re: 2020 Traditional IRA contribution

lshalsor — Wed, 31 Mar 2021 14:46:59 GMT

Thank you for the response, however, the Premier calculator keeps telling me my husband cannot make the contribution.

It seems the Premier IRA calculator need to be corrected. Do you agree?

Re: 2020 Traditional IRA contribution

ReneeM7122 — Wed, 31 Mar 2021 16:31:53 GMT

According to IRS rules, the annual contribution limit for 2019, 2020, and 2021 is $6,000, or $7,000 if you’re age 50 or older. According to the contribution limits,

For 2021, 2020 and 2019, the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:

$6,000 ($7,000 if you're age 50 or older), or
If less, your taxable compensation for the year.

Re: 2020 Traditional IRA contribution

lshalsor — Wed, 31 Mar 2021 18:30:56 GMT

Yes...that is true, however, my 2nd post dealt with the Premier IRA calculator which TurboTax stated my husband did not qualify for. He does, and I was trying to let TurboTax know the calculator, which addresses possible tax savings, is not correct.

The calculator stated because he was 70-1/2, he could not make an Traditional IRA contribution. That is no longer true. The Secure Act now allows a Traditional IRA contribution on earned income, even if you are over 70-1/2.

Re: 2020 Traditional IRA contribution

ReneeM7122 — Wed, 31 Mar 2021 19:10:58 GMT

You are correct, according to what you have told us, you should be able to make the contribution without an error. You may want to try clearing out your browser's cache and cookies.

Here is information on how to delete your cookies:

https://ttlc.intuit.com/community/troubleshooting/help/how-do-i-delete-cookies/00/25978

Here is information on how to clear your cache:

https://ttlc.intuit.com/community/troubleshooting/help/how-to-clear-your-cache/00/26135

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