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Actually, it is not listed as compensation in Pub. 590-A, it is instead mentioned as being used to "increase the amount of nondeductible IRA contributions" under the Nondeductible Contributions section. If it were listed as compensation, I think it would undoubtedly also count for Roth IRAs unless otherwise stated.

 

I could not find a different requirement for taxable compensation for Roth IRAs in Pub 590-A compared to what is written about traditional IRAs. Also, nontaxable combat pay is an exception for both.

 

Again, I agree, one should err on the side of caution.

 

@DaveF1006