topic Re: IRA deductions while receiving SSA benefits in Retirement tax questions

IRA deductions while receiving SSA benefits

tim881 — Wed, 14 Apr 2021 12:50:24 GMT

I am retired and receive SSA benefits. My wife also receives SSA benefits and works part time. She has a 401K plan at work and contributes to a Roth in that plan. We both have IRA's from previous employers. My question is, can I contribute to my traditional IRA and get a deduction for it?

Re: IRA deductions while receiving SSA benefits

DMarkM1 — Wed, 14 Apr 2021 13:26:10 GMT

If filing jointly, your working spouse can contribute to your traditional IRA even though you do not have any earned income. The total contributions she makes to her retirement and yours cannot exceed her earned income or the normal contribution limits.

The normal contribution limits are $6000 plus $1000 catch up if over age 50.

To get the full deduction your joint income has to be below $198,000.

Re: IRA deductions while receiving SSA benefits

tim881 — Wed, 14 Apr 2021 13:57:07 GMT

It does not matter if we are receiving SSA benefits? As long as she has income from a W-2 then we can take a deduction up $7,000.00 since we are over 50 or the total amount that she earned since it is below $7,000. Is that correct? She earned $6,600.

Re: IRA deductions while receiving SSA benefits

MinhT1 — Wed, 14 Apr 2021 14:16:41 GMT

Then you can contribute up to $6,600 to Traditional IRAs, between both of you.