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IRA contribution credit

Forum|Forum|5 years ago
March 4, 2021
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I am over 55, my AGI is over the limit. Since I retired in 2020, I no longer have a 401K, but was covered by a retirement plan in 2020 until I retired. Can I get credit for a "make up" contribution to an IRA?

Best answer by mmcdkava

never mind...just figured out that I am not eligible for IRA contribution based on being covered by qualified retirement plan for part of 2020 and AGI is above the limit. thanks

Carl11_2

Employee

Contributions to an IRA are based on "earned" income. So if you don't have income reported to you on a W-2 or 1099-MISC box 3, or self-employment income you report on SCH C, then you don't have any earned income from which to take any credit for IRA contributions.

M

mmcdkavaAuthor

thank you...I did have earned income in 2020 prior to retiring in August 2020. I made regular contributions to my 401K, but have since rolled that over into an IRA, so no longer have a 401K.

My AGI for the year was above the limit to earn a deduction into an IRA (I think that is $124K).

My question is based on my age (65) can I make "catch up" contributions into an IRA that will be tax deductible, the way I made them into my 401K prior to retirement.