Gift Tax Question

[mbjerry]

My in-laws plan to start gifting us $6k per year to fund my wife’s IRA. Her IRA is traditional. I see that gifts are not reportable or taxable if under the annual limit. So, can I legally claim the $6k pre-tax deduction from my annual Income even though the source was initially a gift?

Thanks for any advice on the subject!

[bacchi]

Yes, money is fungible in this regard. Who's to say that the tIRA contribution came from the gift or the income?

[RWD]

Does your wife have income besides the gift?

[mbjerry]

Does your wife have income besides the gift?

No she does not. When we contribute it comes from my Income.

[secondcor521]

Does your wife have income besides the gift?

No she does not. When we contribute it comes from my Income.

It's fine as long as you have enough income to cover the contributions to both your IRAs, and you comply with the various applicable income limitations for traditional IRAs at https://www.irs.gov/publications/p590a#en_US_2022_publink1000230476.

[bacchi]

And it has to be earned income.