federal tax help
I am retired, living in Illinois and collecting a pension and social security. I am working a part time job but not out of necessity. Wondering if I should open an IRA to offset / help with federal taxes.
THANK YOU
Terry Says
If you earned at least $8000, you have until April 15, 2026 to contribute up to $8000 to a tax deductible IRA. If you’re in the 25% bracket, that saves you $2000 in taxes. And the money grows tax deferred, subject to RMDs if you’re 73 or older.
Good idea if you don’t need the $8000 for immediate living expenses.
