Pro Series Professional Traditional IRA Contribution with ONLY Unearned Income

Feb. 23, 2021

• Can even a Non-Deductible Traditional IRA Contribution be made without any tax penalty with ONLY Unearned Income?

The Taxpayer has only incomes such as pension, bank interest and dividends.

Pension $7500, Interest $5,000, Dividends $15,000

• Can he make a Deductible Contribution to Traditional IRA without any tax penalty?

• Can he make a Non-Deductible Contribution to Traditional IRA without any tax penalty?

Any thoughts / clarifications / updates would be highly appreciated.

Thanks and Regards.

Raj1