mayacoppa
New Member

I receive a industrial disability pension, is my non-taxable retirement considered "earned income"? I got an excess contribution penalty for my Roth IRA contribution.

My pension gross is over $60,000 but not taxable because it is a disability retirement.  I made the maximum allowable $5,500 dollar contribution to my Roth IRA but when I entered the information into Turbo Tax I received an alert that I owed a 6% penalty for an excess contribution because my earned income is zero.  How is that possible?