topic IRA Contribution in Deductions & credits

IRA Contribution

carlurbania — Sun, 09 May 2021 13:02:34 GMT

My wife and I are retired, married and filing jointly. I am 78 and she is 76. I have significant W-2 income , she does not . We both have additional income from pensions and annuities, social security, and investment income. Can I/we make contributions to a traditional IRA? Turbo Tax seems confused on this point in that some part of the instructions say that we are both too old whereas in the Federal Review section the software directs me to the other tax situations part of the product and leads me to claim the maximum contribution for both of us; i.e. $7K for each. BTW we are not covered by any retirement plan even though I have W-2 income. What's correct?

Re: IRA Contribution

DanaB27 — Sun, 09 May 2021 13:48:57 GMT

For years 2019 and earlier if you were 70 ½ or older, you weren't allowed to make a regular contribution to a traditional IRA. But the law changed and since 2020 there is no age limit on making regular contributions to traditional or Roth IRAs. Therefore, as long as you have the taxable compensation you can contribute to the traditional IRA.

Re: IRA Contribution

carlurbania — Sun, 09 May 2021 23:28:26 GMT

Thanks