Abstract: We examined the relationship of cognitive, medical, psychological, and behavioral factors with everyday functioning in a racially diverse older community population recruited from health service agencies. Everyday functioning was characterized as a latent variable composed of 15 instrumental activities of daily living (IADL). The mean (SD) age of the participants (N = 237) was 78.3 (8.1) years; 67% were women, 34% were African-American, 18 (7.6%) met criteria for a depressive disorder, and 61 (27.0%) met criteria for dementia. Worse verbal memory, older age, depression, and number of medical conditions were independently associated with worse IADL ability. The final model explained 60% of the variability. As the population ages and the prevalence of impaired cognition and disability rises, identifying cognitive and noncognitive determinants of disability becomes increasingly important. Interventions to optimize episodic memory, medical status, and treatment of depression may slow down the pathway to disability in older persons.