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 all of your traditional IRA contribution.
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 contribution.
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.