Which line should be used for allowed regular IRA contribution when W-2 Line 1 [>$6,500] is larger than line 3 [<$6,500] due to health insurance paid for >2% shareholder?

Boca-Gator · ‎June 6, 2019

dmertz · ‎June 6, 2019

From IRS Pub 590-A, What is Compensation?:

The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans).

View solution in original post

Which line should be used for allowed regular IRA contribution when W-2 Line 1 [&gt;$6,500] is larger than line 3 [&lt;$6,500] due to health insurance paid for &gt;2% shareholder?

Retirement tax questions

Which line should be used for allowed regular IRA contribution when W-2 Line 1 [>$6,500] is larger than line 3 [<$6,500] due to health insurance paid for >2% shareholder?