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January 29, 2024
Question

I pay into a retirement account I don’t withdrawal from it but I was told I had to file it on my taxes

  • January 29, 2024
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January 29, 2024

It depends on how you have the retirement account and what kind of account it is.  

 

If you have a retirement plan through your employer, you would not need to report it, as box 1 of your W-2 already accounts for the contributions to your retirement plan.  If you look, you will see box 1 is less than box 3 or 5.  This is because you get a federal deduction from income from the contributions but not from your Social Security or Medicare taxes.

 

If you have personally contributed to the retirement plan, then yes, you would need to enter the contributions you made in the deductions and credits section under Retirement and Investments to get a deduction from income for your retirement contributions.

 

If this was a self-employed contributions, then you would enter them in the Business section of TurboTax under Less Common Business Expenses>> Self-Employed Retirement.

 

The deductibility of your contributions will depend on what type of plan as well and if you have a retirement plan at work or not.  There also may be limits to the amount you are allowed to deduct

 

The plan administrator does report these contributions to the IRS, so they do know you are making the contributions. 

 

Another benefit to entering them into TurboTax year over year, is that it helps track your basis when you do make a withdraw. 

 

 

 

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