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jb65750a
Level 1

401k contribution

I am retired on pension and SS, 63 years old and have a 401k with my employer prior to my retirement. My wife has maxed contributions on her 401k for 2020. Turbo Tax shows that if I contribute $7000 to my 401k it could save me potentially $1500. Currently I have not made a contribution nor did so in 2020. My employer plan now that I am retired will not allow me to contribute further. My question is based on the above detail, can I open a "new" 401k account before April 15, contribute the $7000 and claim on my taxes for 2020 to receive this credit as noted in Turbo Tax program?

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Accepted Solutions
DMarkM1
Expert Alumni

401k contribution

You can open an IRA prior to Apr 15, 2021 and make contributions that count for tax year 2020.   However, you do have to have earned income to contribute to an IRA.  

 

Here is a link with more information on the topic. 

 

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2 Replies
DMarkM1
Expert Alumni

401k contribution

You can open an IRA prior to Apr 15, 2021 and make contributions that count for tax year 2020.   However, you do have to have earned income to contribute to an IRA.  

 

Here is a link with more information on the topic. 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
dmertz
Level 15

401k contribution

As DMarkM1 indicated, TurboTax is suggesting that you can contribute to an IRA, not to a 401(k).  IRAs and 401(k) are two different ways for saving for retirement.  You are not eligible to contribute to an 401(k) but you are eligible to contribute to an IRA if you (or your spouse if you file jointly and your spouse has higher compensation) have necessary compensation to support the contribution.

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