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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Your contribution is limited to your earned income.
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
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??
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.
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