Q. It says that I will receive a penalty for contributing to my Roth IRA, since it is not earned income. Do you know how I can correct this?
A. In the educational interview, you must indicate that you are a grad student. For this purpose (stipend being earned income), Post-Doctoral Fellow counts as being grad student.
Fellowship Graduate Student Savings Act of 2019 Allows graduate students and postdocs to start saving for their retirement. The bill amends section 219(f) of the Internal Revenue Code to allow “any amount paid to an individual to aid the individual in the pursuit of graduate or postdoctoral study or research” to be considered compensation for purposes of determining qualified retirement contributions to individual retirement plans.
