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Retirement tax questions
You cannot use the scholarship to make a Roth IRA contribution since you were an undergrad.
From Pub 590-A: "A scholarship or fellowship is generally taxable compensation only if it is in box 1 of your Form W-2, Wage and Tax Statement. However, for tax years beginning after 2019, certain non-tuition fellowship and stipend payments not reported to you on Form W-2 are treated as taxable compensation for IRA purposes. These amounts include taxable non-tuition fellowship and stipend payments made to aid you in the pursuit of graduate or postdoctoral study and included in your gross income."
For 2022 the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:
- $6,000 ($7,000 if you're age 50 or older), or
- If less, your taxable compensation for the year
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‎April 3, 2023
8:17 AM