Question

earned income and IRA deduction

Forum|Forum|5 years ago
April 7, 2021
1 reply
0 views

Hello,

Question? My wife’s only income is her monthly SS which I am told is not considered earned income for IRA purposes.

We did take about 25 K in 401 distributions from my 401. Also I earned a regular salary for the first 6 months of the year and then retired as a result of covid. I also earned full SS payments for the year.

If we file jointly are we able to put 7K in her IRA tax free and lowering our earned income or would it be based only on her earned income?

Thanks.

Not A Product Question

macuser_22

Employee

On a joint tax return the amount that can be contributed to the spouses IRA is no more than than the total taxable compensation (money you worked for) minus your own IRA contribution (if any) but not to exceed $6,000 ($7,000 if over age 50).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**