Contribution to IRA did not take IRA deduction due to my AGI being to high last year. Can I take a deduction this year for that contribution?
Good Afternoon Nysrich,
If you made contributions to an IRA in 2023 and your AGI was too high to take the deduction, then it is non-deductible contribution and you have basis in the IRA. The "Basis" means this contribution is with the "after-tax" money and when you take a distribution, it won't be taxed again. It is all reflected on Form 8606, Nondeductible IRAs.
No, you can not take a deduction in 2024 for a contribution that you did in 2023.
If the 2023 IRA contribution was made in 2024 by 4/15 designated for 2023, you could possibly reclassify the contribution date as being 2024.
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Have an amazing day.
AR (CPA 10+ years)