Abstract Objective Although research has established that lower socioeconomic status (SES) is linked to worse cognitive functioning in Latino older adults, the precise mechanisms underlying this association remain unclear. SES has been linked to the manifestation and severity of depression and anxiety, and evidence suggests that Latinos may be more susceptible to the negative effects of these psychological factors in late life. Therefore, the present study examined the mediating role of psychological symptomatology in the relationship between SES and cognition. Method 736 Latino older adults (mean age = 62.67) enrolled in HABS-HD were included. Mediation analysis tested the direct and indirect effects of SES (annual household income) and psychological symptomatology (depression, chronic stress) on memory and executive functioning composite scores. Results The direct effect of SES on memory was fully mediated by depression (β = 0.02, CI [0.01, 0.04]), and depression partially mediated the relationship between SES and executive functioning (β = 0.02, CI [0.01, 0.04]). There were no significant indirect effects of chronic stress on SES and memory (β = −0.0003, CI [−0.003, 0.002]) or executive functioning composite scores (β = 0.0004, CI [−0.002, 0.003]). However, after controlling for chronic stress, SES had a direct effect on executive functioning (β = 0.12, CI [0.03, 0.12], p = 0.001), but not memory (β = 0.03, CI [−0.03, 0.07], p = 0.48). Conclusions The effect of SES on cognition is mediated by depressive symptomatology but not chronic stress. Results suggest that culturally tailored treatment of depression may be an immediate intervention against long-standing resource inequalities.