IRA Deduction

[bgtheedge]

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?  

[fanfare]

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

[Vanessa A]

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. 

[dmertz]

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