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New Member
posted Jan 15, 2025 7:51:09 AM

Contribution to retirement

I had $1350 in earned income in 2024.  All the rest is SS, 401k, and interest.  Can I contribute the $1350 to retirement to reduce my MAGI??  I need the reduction for IRMMA purposes.  Is $1350 all I can contribute??

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4 Replies
Level 15
Jan 15, 2025 8:05:04 AM

Your contribution is limited to your earned income. 

Level 15
Jan 15, 2025 8:06:59 AM

Is your earned income from W2 wages or 1099NEC self employment?  If you have self-employment income you can only contribute up to your net profit reduced by the deduction allowed for the ER portion of your self-employment taxes. The 1/2 SE Tax amount will be on Schedule 1 line 15 which goes to 1040 line 10.


See IRS publication 590A for IRA contributions
https://www.irs.gov/pub/irs-pdf/p590a.pdf

New Member
Jan 15, 2025 8:50:02 AM

Thanks for the response.  It will be a w2. 

Do I just call my broker and make a contribution??  Will I get a form from him to put on my taxes to reduce the MAGI??

Employee Tax Expert
Jan 20, 2025 3:59:42 PM

Yes, call your broker to make the contribution. Typically you may receive a form proving you made the contribution but not always. The IRS will take your word that you made this contribution before the due date of your return.