Reducing AGI
Hi Terry
I’m trying to reduce my AGI. Can I put 7k from my savings into a Traditional IRA and deduct that amount from our taxes? My wife and I are retired and not in an employer sponsored plan. Thanks Terry and WGN
Terry Says
You cannot contribute to an IRA unless you have EARNED INCOME from work. If you do have earned income and are over age 50, you can put up to $8,000 into an IRA and deduct it. It doesn’t matter where the actual money comes from, but you MUST have earned income (not pension, interest, dividends, SS) to make the contribution.
