Using Retirement Contributions to Lower Taxes

[seschappert]

Usually Turbo Tax prompts me to look at how making a contribution to my retirement account can help save on taxes.  This year, I am not getting that same prompt.  Does Turbo Tax still offer guidance in this regard?

[LindaS5247]

Yes, that guidance is still in TurboTax. It comes up at the very end before you file. You have until April 15th, 2025 to make a Traditional IRA contribution for 2024.

For the 2024 tax year, you can contribute up to $7,000 to your IRA if you're under 50, or $8,000 if you're 50 or older. 

The money deposited into a traditional IRA reduces your adjusted gross income (AGI) for that tax year on a dollar-for-dollar basis, assuming it is within the annual contribution limit.

Click here for "Deductions Allowed for Contributions to a Traditional IRA"