#1) I am retired, and I have been taking RMD's for three years. My wife is employed (no pension plan), and she makes a $7,000 IRA contribution. I was told last year that I can also make a $7,000 contribution even though I am receiving RMD's. My wife's income is well above the total $14,000 we are contributing. Is it correct that we can both contribute even though I must take RMD's?
#2) I just noticed that on my two year comparison last year one of my 3 RMD's was not put into line 4B (taxable RMD's) but instead was included on line 5B (taxable pensions). The tax would be the same, but the NJ state and Federal show incorrect RMD amounts. I didn't pick up on this last year when I filed, and I entered the information correctly on Turbo Tax. What should I do?
Thanks for any help that you can give me.
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1) Yes, that is correct there is no age limit on making IRA contributions and if your spouse has enough taxable compensation then you both can make contributions. Please see Kay Bailey Hutchison Spousal IRA Limit for additional information.
2) If the tax doesn't change then you don't need to worry about it.
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