SIGforum
Question for the tax gurus
February 01, 2018, 07:46 AM
tsmccullQuestion for the tax gurus
I worked for about half of 2017 and then retired and started collecting pension and SS payments. During the working half, a percentage was going to a 401K, but no $ to my IRA. Prior to filing my 2017 return, can I still make a deposit to my IRA which would reduce my taxable income from last year? I've heard that up to $6500 is allowed to be deposited and if done before April 15th, it is treated as though it applies to last year's earned income. True? False? Thanks.
February 01, 2018, 10:08 AM
Sailor1911Presuming that you meet the qualifications for a deductible IRA contribution, yes you can make a contribution up until the filing deadline (or the date you file, if earlier) and consider it a prior year (2017) contribution.
Place your clothes and weapons where you can find them in the dark.
“If in winning a race, you lose the respect of your fellow competitors, then you have won nothing” - Paul Elvstrom "The Great Dane" 1928 - 2016 February 01, 2018, 10:43 AM
229DAKTry
here for qualifications.
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February 01, 2018, 12:18 PM
Sig209quote:
Originally posted by Sailor1911:
Presuming that you meet the qualifications for a deductible IRA contribution, yes you can make a contribution up until the filing deadline (or the date you file, if earlier) and consider it a prior year (2017) contribution.
This.
One thing - make sure the fund administrator knows 100% they are for tax year 2017! I sent a couple checks out in 2018 for tax year 2017 and - EVEN THOUGH I designated them 2017 - they were deposited as 2018 contributions. I was able to get it straightened out.
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Proverbs 27:17 - As iron sharpens iron, so one man sharpens another.
February 01, 2018, 01:10 PM
joel9507quote:
Originally posted by Sig209:
make sure the fund administrator knows 100% they are for tax year 2017
Yep.
They should be old hands at this. Usually there's a checkbox on the deposit form/website. If not, check with their customer support folks.
February 01, 2018, 04:06 PM
mikeyspizzaYes, but you can't put in more than you earned.
February 01, 2018, 05:13 PM
Rey HRHI got no advice. Just congratulations on your retirement and even being able to stash more money into your 401k
"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.