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?
You'll need to sign in or create an account to connect with an expert.
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.
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.
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.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
zzz8881
New Member
simplyquigley
New Member
jjyoo92
New Member
packfan444
New Member
bhJogdt
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.