topic tradional ira in Retirement tax questions

tradional ira

Pjsmith2464 — Mon, 09 Mar 2026 06:51:34 GMT

my sister is 62 and put $7000 in her traditional IRA which should be allowed... however now turbo tax says she has to pay money back.... as a penalty?? why

Re: tradional ira

Bsch4477 — Mon, 28 Mar 2022 15:44:32 GMT

How much was her earned income?

Re: tradional ira

Pjsmith2464 — Mon, 28 Mar 2022 15:45:24 GMT

she is retired... she only made $413

Re: tradional ira

Bsch4477 — Mon, 28 Mar 2022 15:50:08 GMT

You can only contribute an amount equal to your earned income or $6000 whichever is less.

Re: tradional ira

Pjsmith2464 — Mon, 28 Mar 2022 15:51:27 GMT

that can't be right... you should be able to put in at least $3000...... she is retired and is allowed $6000 plus an extra $1000 cause she is 62 i dont understand

Re: tradional ira

dmertz — Mon, 28 Mar 2022 16:14:57 GMT

IRA contributions are not permitted to be more than compensation. Compensation is income from employment. If she only earned $413 and you have no compensation which can be used to make a spousal contribution, she is limited to an IRA contribution of $413.