Traditional IRA

[aleste22]

I was injured at work and am on long term disability with my job and on social security disability.  I have a 401 from my job, but i am not able to contribute to it due to disability.  Can i contribute to a Traditional IRA and receive the deduction?

[DavidS127]

Your contribution to an IRA is deductible only to the extent you have taxable compensation.

Social security is not considered taxable compensation for purposes of an IRA deduction.  Long-term disability income that you receive prior to the minimum retirement age under your employer's plan and that is shown as taxable compensation in box 1 of Form W-2 is treated as earned income for purposes of contributing to an IRA.