topic IRA Contributions in Other financial discussions

IRA Contributions

pclark3 — Tue, 23 Mar 2021 21:53:22 GMT

Can you take money from a savings account and make a traditional IRA Contribution to reduce AGI?

The money is not from any retirement fund, annuity or Social Security.

Thank you

Re: IRA Contributions

VolvoGirl — Tue, 23 Mar 2021 21:55:40 GMT

Yes if you have earned income from W2 wages or a Net Profit from self employment.

Re: IRA Contributions

pclark3 — Tue, 23 Mar 2021 21:59:08 GMT

WOW. Thank you that was fast.

I did not earn any money from a W2 this year.

However, the money was earned in prior years, if that make sense.

Thank you

Re: IRA Contributions

macuser_22 — Tue, 23 Mar 2021 22:03:13 GMT

It has to be 2020 taxable compensation - W-2 or net self-employed income. (1040 line 1 and/or schedule 1 line 3 minus line 14 & 15).

Re: IRA Contributions

pclark3 — Tue, 23 Mar 2021 22:58:49 GMT

Thank you

Line 1 contains the amount I contributed.

I should be good correct???

Thank you very much

Re: IRA Contributions

macuser_22 — Tue, 23 Mar 2021 23:04:37 GMT

What income is on line 1 if you had no W-2?

Re: IRA Contributions

macuser_22 — Tue, 23 Mar 2021 23:07:09 GMT

Enter the IRA contribution in the interview and the last screen should tell you if you qualify or if it is an excess contribution.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

Re: IRA Contributions

pclark3 — Tue, 23 Mar 2021 23:33:04 GMT

We did have a W2 for 2020.

I neglected to tell you that. Apologies.

Having the W2 showing earnings for 2020 is all I needed.

I just needed to be in the guidelines allowed for annual IRA contribution and the W2 needed to have at least that amount.

Thank you very much!!!

Re: IRA Contributions

pclark3 — Wed, 24 Mar 2021 02:28:35 GMT

Yep.

I did that, worked great.

I do indeed qualify.

Thank you for your responses.

Re: IRA Contributions

macuser_22 — Wed, 24 Mar 2021 02:32:31 GMT

Glad it helped you.