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chapinreyes
May 1, 2021
Question

Opent Tax Deductible IRA Before 5/17/2021 to lower taxes

  • May 1, 2021
  • 1 reply
  • 0 views

Hello,

 

I see this message about being able to open a traditional IRA and contribute which would help lower taxes this year?  Help me understand.  If I open a traditional account before 5/17/2021 and contribute, will this help me lower my 2020 taxes? See screenshot

 

    1 reply

    D
    DanaB27
    May 1, 2021

    Yes, your traditional IRA contributions may be tax-deductible. But the deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Please see IRA deduction limits for details. 

     

    You have until May 17th to make contribution for 2020.

     

    The total contributions you make each year to all of your traditional IRAs  and Roth IRAs can't be more than:

    • $6,000 ($7,000 if you're age 50 or older), or
    • If less, your taxable compensation for the year
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