Traditional IRA contribution-Retired

Forum|Forum|3 years ago
February 10, 2023
1 reply
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Hello-

I retired in July 2022. I had full time employment up until that period. I am now working part time, with very little pay, as I have a decent pension. Can I contribute the full amount to a traditional IRA for 2022? I realize that in 2023, this will be limited based on my income amount. My husband is currently full time employed, so I wasn't sure if spousal contribution could be factored in or not.

Thanks.

Not A Product Question

AmyC

Employee

1. You can contribute the full amount to a traditional IRA. The question is can you deduct the IRA on your taxes. If you were covered by a retirement plan at work this year, you are subject to income limitations. MFJ phases out when MAGI is $109,000 to $129,000. See IRA deduction limits for more.

2. For 2023, if you do not make enough to contribute, your spouse can contribute the funds. Since you do not have a retirement plan, there is no limitation. A spousal contribution does not bring you under his work retirement plan so you are still considered not covered. See Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)

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ckw-jw51

Good morning all -

My husband retired in December 2022 he did contribute to a 403(b) retirement plan. I retired in 2021 and no income for me except my social security. When doing our taxes this year using turbo tax it said that we can contribute to our traditional ira's this year and get credit for doing so. In the past we have not been able to do so, I am assuming that we were over the limits. Can someone confirm if this is correct, please.

Thanks,

ckw-jw51

MayaD

Since your husband was covered by a retirement plan at work, you can:

Take a full deduction up to the amount of your contribution limit if your Modified AGI is $109000 or less.
Take partial deduction if Modified AGI is more than $109,000 but less than $129,000
No deduction if Modified AGI $129,000 or more

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