2025 Tax Season is Here: TSP, IRA Considerations for Contributions and RMDs

2025 Tax Season is Here: TSP, IRA Considerations for Contributions and RMDs

You can fund a spouse’s IRA even if he or she had no earned income in the prior year, and take the deduction this year; less tax and more savings.  

One of the rules around Individual Retirement Arrangements (IRAs) is that one must have earned income to contribute to an IRA and that the contribution cannot exceed the amount of income one has earned, even if that level of income is below the annual contribution. For example, If I had $5,000 of earned income in 2024, I can’t contribute more than that amount to an IRA, even though the 2024 contribution limit is $7,000 (plus another $1,000 if over 50).

Some readers may have noticed that I used the present tense “is” when referring to last year’s limit. Why didn’t I say “was”? Follow link to read more from FEDweek. https://www.fedweek.com/tsp/2025-tax-season-is-here-tsp-ira-considerations-for-contributions-and-rmds/