It's true that your pension is not considered "earned income." [This would affect certain credits like the earned income credit.] However, your pension IS considered taxable income, included in your gross income, AGI, and MAGI. You need to have taxable income in order to contribute to a Roth IRA
You can contribute to a Roth IRA if you have taxable income and your MAGI is less than the amounts listed below. For 2019 and 2020, your total contributions to all of your traditional and Roth IRAs cannot be more than: $6,000 ($7,000 if you're age 50 or older), or. your taxable income for the year, if your income was less than this dollar limit.
Your Roth IRA contribution limit is reduced (phased out) in the following situations.
- Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $193,000. You can’t make a Roth IRA contribution if your modified AGI is $203,000 or more.
- Your filing status is single, head of household, or married filing separately and you didn’t live with your spouse at any time in 2019 and your modified AGI is at least $122,000. You can’t make a Roth IRA contribution if your modified AGI is $137,000 or more.
- Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than zero. You can’t make a Roth IRA contribution if your modified AGI is $10,000 or more.
If you would like to calculate your MAGI, you can use the worksheet listed on p. 40 of IRS Pub. 590-A Contributions to Individual Retirement Arrangements (IRAs)
For more information, you can click on this link for a TurboTax article: What Is the Difference Between AGI and MAGI on Your Taxes?
