I get monthly checks from the company I retired from. They are called non-qualified benefits disbursement - maybe it is deferred compensation payout. They send me two 2023 W2's for it. I enter these and there is about $40k that shows up as earned income in Turbotax Deluxe desktop 2023. The Turbotax says I am ineligible for IRA contribution because my earned income is zero - even though there is a $40k value in the earned income line. It asks me my total traditional IRA amount (??) and then says I have to pay penalty - I cannot get past this step. Is this because it sees my non-qualified disbursement as non-applicable to earned income requirements for IRA contribution? I also have dividend, soc sec and 1099R income which I know does not count towards IRA eligibility earned income.
