topic Re: Contribution to IRA in Retirement tax questions

Contribution to IRA

Rmm1 — Wed, 29 Jan 2020 22:46:20 GMT

MY wife and I are both retired, no wages, salary, etc. If we contribute new money to an IRA do we have to report that money on our taxes?

Re: Contribution to IRA

Bsch4477 — Wed, 29 Jan 2020 22:51:01 GMT

You can’t contribute to an IRA if you had no earned income.

Re: Contribution to IRA

Rmm1 — Wed, 29 Jan 2020 22:54:51 GMT

Okay, if I can't open an IRA, can I contribute to am IRA I already have?

Re: Contribution to IRA

Bsch4477 — Wed, 29 Jan 2020 22:55:20 GMT

No.

Re: Contribution to IRA

Rmm1 — Wed, 29 Jan 2020 22:57:53 GMT

Let me restate this question. If I contribute to an IRA 'must' that contribution be reported or can I just leave it out?

Re: Contribution to IRA

Rmm1 — Wed, 29 Jan 2020 23:00:10 GMT

I'm sorry but your answer of 'no' does that refer to must I report it or to just leave it out?

Re: Contribution to IRA

Bsch4477 — Wed, 29 Jan 2020 23:13:53 GMT

You cannot make a contribution to an IRA whether it’s new or old if you did not have earned income. If you did erroneously contribute you must withdraw it.

Re: Contribution to IRA

dmertz — Thu, 30 Jan 2020 00:02:09 GMT

If you made such a contribution and do not obtain a return of this excess contribution before the due date of your tax return, you must report the contribution on Form 5329 as an excess contribution and pay the excess-contribution penalty.