{"id":183255,"date":"2021-02-19T22:05:03","date_gmt":"2021-02-19T19:05:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/im-73-and-work-part-time-can-i-make-a-deductible-ira-contribution\/"},"modified":"2021-02-19T22:05:03","modified_gmt":"2021-02-19T19:05:03","slug":"im-73-and-work-part-time-can-i-make-a-deductible-ira-contribution","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/im-73-and-work-part-time-can-i-make-a-deductible-ira-contribution\/","title":{"rendered":"#\n  I\u2019m 73 and work part time, can I make a deductible IRA contribution?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a37c30da69c3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a37c30da69c3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/im-73-and-work-part-time-can-i-make-a-deductible-ira-contribution\/#It_depends_on_the_particulars_of_your_tax_situation\" >It depends on the particulars of your tax situation<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/im-73-and-work-part-time-can-i-make-a-deductible-ira-contribution\/#Dan_Moisand\" >Dan Moisand<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  I\u2019m 73 and work part time, can I make a deductible IRA contribution?<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"It_depends_on_the_particulars_of_your_tax_situation\"><\/span>\n  It depends on the particulars of your tax situation<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"0E14452A-72CD-11EB-930D-C0E98FAA746F\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       <strong>Q.:<\/strong> I am 73 and single. Looking at my taxes for 2020, I think I can save a few bucks by putting money in an IRA. I don\u2019t have a 401(k) or anything like that, and make some money working part time so if I understand it, I can make a deductible IRA contribution now. Is that true? Is that smart? <\/p>\n<p> \u2014 Gene in Mobile<\/p>\n<p><strong>A.:<\/strong> Gene, <\/p>\n<div class=\"paywall\">\n       Working seniors, regardless of their age, have always been able to contribute to a Roth IRA if their income was within certain limits but if over age 70\u00bd, they could not contribute to a traditional IRA. The SECURE Act of 2019 eliminated that age restriction so now persons over age 70\u00bd can contribute to a traditional IRA if they have earned income. Earned income is basically earnings from working and certain other payments like alimony from a divorce settled in 2018 or earlier. <\/p>\n<p>Whether making a contribution is smart depends on the particulars of your tax return and other factors. You should discuss the details with your adviser, but I will touch on a couple of factors here. <\/p>\n<p>The 2020 contribution can be 100% of earned income up to a maximum of $7,000 for 2020 ($6,000 for anyone under age 50) and can be made as late as April 15, 2021. Whether you can deduct the contribution is dependent on your Modified Adjusted Gross Income (MAGI) and whether you participate in a qualified retirement plan. With no 401(k), you are probably not a plan participant. <\/p>\n<p>For 2020, single taxpayers that are not participants in a qualified plan can make tax deductible contributions. Single taxpayers that are participants must have a MAGI of $64,999 or less to deduct a full contribution. Such participants with MAGI over $75,000 cannot deduct any of their contribution and those with a MAGI in between, get a partial deduction.<\/p>\n<p>Unlike a Roth IRA or a 401(k) at your employer, you will still have to make a Required Minimum Distribution (RMD). Nonetheless, making a deductible contribution may still reduce your taxes some.<\/p>\n<p>One wrinkle to contend with <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lies if you make Qualified Charitable Distributions (QCD) to charity from a traditional IRA. For those over 70\u00bd, this is a popular and efficient way to give to charity because the donations can count toward RMD but are excluded from income. Once you make a deductible contribution to an IRA any QCDs you make are included in income until the amount of QCDs equals the cumulative total of all deductible IRA contributions made since the year you turned 70\u00bd.<\/p>\n<p>For example, if you make a deductible contribution of $7,000 in both 2020 and 2021, the first $14,000 of QCDs are not tax-free distributions. You may or may not get some tax benefit from those donations as an itemized deduction. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><em>If you have a question for Dan, please email him with \u201cMarketWatch Q&amp;A\u201d on the subject line<\/em>. <\/p>\n<p><em>Dan Moisand is a financial planner at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/moisandfitzgerald.com\/\" class=\"icon none\">Moisand Fitzgerald Tamayo <\/a>serving clients nationwide from offices in Orlando, Melbourne, and Tampa Florida. His comments are for informational purposes only and are not a substitute for personalized advice. Consult your adviser about what is best for you. Some questions are edited for brevity<\/em>.<\/p>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetCommentingPromo\n              \n              inline\n  article__inset\n          article__inset--type-InsetCommentingPromo\n              article__inset--inline\n  \"><\/p><\/div>\n<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Dan Moisand\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Dan_Moisand\"><\/span>Dan Moisand<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<div class=\"mw-author-contributor\">MarketWatch Contributor Network<\/div>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B0E14452A-72CD-11EB-930D-C0E98FAA746F%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# I\u2019m 73 and work part time, can I make a deductible IRA contribution? &#8221; It depends on the particulars of your tax situation Q.: I am 73 and single. Looking at my taxes for 2020, I think I can save a few bucks by putting money in an IRA. I don\u2019t have a 401(k)&#8230;<\/p>\n","protected":false},"author":1,"featured_media":85984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-183255","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/183255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=183255"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/183255\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/85984"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=183255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=183255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=183255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}