giogis245 Posted March 24, 2021 Report Share Posted March 24, 2021 Taxpayer asked me if he can put in an amount into this Roth IRA now (2021) and I take a deduction on 2020 taxes? He says he's done it for years, it reduces his income now. W2 says nothing! Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 24, 2021 Report Share Posted March 24, 2021 A Roth IRA contribution is not a tax deduction. Does he qualify to make a deductible Traditional IRA contribution? 3 Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 24, 2021 Report Share Posted March 24, 2021 Hopefully, your client just got traditional IRA sand the Roth IRA confused. 1 Quote Link to comment Share on other sites More sharing options...
giogis245 Posted March 24, 2021 Author Report Share Posted March 24, 2021 I made a mistake and put Roth but it is a traditional IRA. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 24, 2021 Report Share Posted March 24, 2021 https://www.irs.gov/retirement-plans/ira-deduction-limits Check to make sure your client qualifies for a deductible Traditional IRA. Also, see if the Saver's Credit is available? 4 Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 24, 2021 Report Share Posted March 24, 2021 But assuming he meets the income and no-employer-plan requirements, he has until he files, or the due date (now May 17) whichever is first. So if he already filed, he's out of luck. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 25, 2021 Report Share Posted March 25, 2021 I have some older clients with small W2's and low income. They make Roth IRA contributions just to get the retirement savers credit, knowing that they can take the Roth money whenever needed or leave it for their beneficiaries. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 25, 2021 Report Share Posted March 25, 2021 36 minutes ago, Catherine said: But assuming he meets the income and no-employer-plan requirements, he has until he files, or the due date (now May 17) whichever is first. So if he already filed, he's out of luck. Actually, I don' think the IRS has issued issued guidance on this yet. Hold your breath, film at 11. Quote Link to comment Share on other sites More sharing options...
Slippery Pencil Posted March 25, 2021 Report Share Posted March 25, 2021 1 hour ago, Catherine said: until he files, or the due date (now May 17) whichever is first. So if he already filed, he's out of luck. No requirement to fund the ira before filing. You can file in February, receive your refund in March, then use the refund to fund the ira. 1 Quote Link to comment Share on other sites More sharing options...
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