DaveF1006
Expert Alumni

Get your taxes done using TurboTax

Yes, publication 590 does say that IHSS payments can counted as compensation toward a non-deductible IRA contribution. This is the listed in the Traditional IRA section of Publication 590. 

 

However, the language is very clear that Roth contributions must be made from taxable compensation.  Without a clear guideline that suggests otherwise, we must assume that IHSS payments do not count as taxable compensation for a Roth contribution.  When  a position isn't clear, it's best to err on the side of caution.

 

@rulesareconfusing 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"