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Retirement tax questions
1. Yes, they can contribute to an IRA.
2. No, there is no excess contribution if they stick to the rules.
About Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs) page 7 shows scholarship income does qualify as compensation for purposes of an IRA and you can review the rules for your situation and type of IRA.
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‎April 4, 2024
3:30 PM