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Level 1

Question

IRA Deduction

Forum|Forum|4 years ago
March 14, 2022
2 replies
3 views

I am retired and have a life insurance policy that is paid by my company but is charged to me as earned income on a W2. Can I use that to contribute to a IRA and receive a tax break?

Level 15

If it shows on Line 1, you can contribute that much.

Level 15

Yes, you can use that money to contribute to an IRA to receive a tax break. The laws have changed for 2021, now there is not an age limit to contribute to a traditional IRA, but you still must take your RMD.

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Level 15

With regard to your W-2, the IRS treats as compensation the amount in box 1 minus any amount in box 11.