Making an IRA Contribution?

[marko]

Apologies if this has been covered before. Further apologies if this is such a simple question but I haven't been thinking of IRA contributions since I retired almost 20 years ago.

This past year our tIRA withdrawals were unusually high due to some one-off expenses. This coming year we expect an unusually low rate of tIRA withdrawals.

Does it make sense for me to contribute the max ($7500) to my tIRA in order to reduce my tax bill this year? It might also keep me from entering another IRMAA bracket.

As I understand it, there is no longer an age limit to contribute; I'll be 72 this coming year. I'm not worried about RMDs as our withdrawals far exceed any RMD number.

Also would this be something I need to do before 12/31 or would I have until April 15?

Any insight from the collective is much appreciated.

 

[GrayHare]

If you have at least $7500 in 2023 earned income, you can make the contrib by April 15 2024 to be 2023 tax deductible. The earned income requirement is the limiting factor for most retirees.

 

[RunningBum]

Do you have earned income? That's a requirement for IRA contributions, and you said you have been retired for over 20 years.

 

[marko]

If you have at least $7500 in 2023 earned income, you can make the contrib by April 15 2024 to be 2023 tax deductible. The earned income requirement is the limiting factor for most retirees.

Do you have earned income? That's a requirement for IRA contributions, and you said you have been retired for over 20 years.

Ah! My only income is from dividends/cap gains and SS. So it looks like I'm out! I'm so glad I have this space as a resource!!

Thanks!