Traditional IRA Contribution
You can contribute up to $5,500 to your IRA if you have earned income
from a job or self-employment and you are under age 70 1/2. If you are age 50 or
older, you may contribute up to $6,500. Traditional IRA contributions may be
deductible on your tax return. File IRS Form 8606, Nondeductible IRAs, if you
are not deducting al of your traditional IRA contribution.
Retirement Savings Credit
If you contribute to an
IRA or an employer-provided retirement account, such as a 401(k), you may be
eligible for a credit. The credit is based on up to $2,000 of your contribution
for the year. You must be age 18 or older to claim the credit and you cannot
be a student or claimed as a dependent on another's return. The credit is in
addition to any deduction or exclusion from income for the
Roth Contributions and Conversions
Contributions to a Roth IRA or 401(k) are not tax deductible. Conversion amounts from a traditional IRA or 401(k) to a Roth IRA or Roth 401(k) are taxable in full in the year of the conversion.