Who is eligible for ira contribution

Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.

Skip to Main Content. Search fidelity. Investment Products. Why Fidelity. Print Email Email. Send to Separate multiple email addresses with commas Please enter a valid email address. Your email address Please enter a valid email address. Message Optional. Open an IRA. Roth IRA contribution limits. Traditional IRA deduction limits. Next steps Open an IRA. Set up automatic contributions to an existing IRA. Chat with a representative.

Internal Revenue Service Publication Please enter a valid ZIP code. All Rights Reserved. Open an traditional IRA. Danny's grandmother can make the contribution on his behalf. Sarah, age 50, is married with no taxable compensation for Make an improper rollover contribution to an IRA. Page Last Reviewed or Updated: Nov Share Facebook Twitter Linkedin Print. Not all income qualifies.

Rental income, interest, dividends, pension, or annuity income, as well as deferred compensation payments and any amounts you exclude from your income, are not considered eligible compensation for IRA purposes. If you are married and do not have eligible compensation, you may be able to make a spousal IRA contribution. Couples must file a joint tax return to take this option. Here's a hypothetical example to show how this works. But as of Jan. This greatly helps individuals save towards retirement, as people are living longer and thus working longer.

Taxpayers typically have until the income tax filing deadline to make an IRA contribution for the prior tax year. So, in a typical year, if you file for a six-month extension, you would have until October 15 to contribute. Similar to your tax return, the postmark date is considered timely. If you are sending your IRA contribution to your financial institution by mail, make sure the envelope is postmarked by the appropriate deadline. If you are a member of the armed forces who served in a combat zone or provided qualifying services outside of a combat zone, you receive an automatic extension for making your IRA contribution.

The extension is usually days after one of the following:. Make sure your financial institution knows the year to which your contribution applies and ask about their documentation requirements for contributions made during your extension period.

When sending a check to fund an IRA contribution, be sure to write the applicable tax year in the memo field. Otherwise, your financial institution could apply the contribution to the incorrect tax year. Check to make sure you meet the eligibility requirements and that you received eligible compensation for the year before you make your IRA contribution. To be sure that your contribution was deposited for the right tax year, check your account statement for the month the amount is deposited.

Financial institutions are more likely to correct processing errors if the errors are detected early. And most importantly, check with your tax and financial professional for assistance with determining whether contributing to your IRA is a good financial decision for you. Internal Revenue Service. Accessed Nov. Income Tax.