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posted Jun 4, 2019 10:47:00 PM

Can W2G earnings be put into our IRA and thus not be taxed?

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1 Best answer
Level 15
Jun 4, 2019 10:47:03 PM

Only taxable compensation can be used to fund an IRA.  Gambling winnings are not taxable compensation unless you are self-employed as a professional gambler.

See this IRS website for IRA contributions - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li...

Also see IRS Publication 590-A for a definition of compensation - https://www.irs.gov/publications/p590a/ch01.html#en_US_2016_publink1000230355

1 Replies
Level 15
Jun 4, 2019 10:47:03 PM

Only taxable compensation can be used to fund an IRA.  Gambling winnings are not taxable compensation unless you are self-employed as a professional gambler.

See this IRS website for IRA contributions - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li...

Also see IRS Publication 590-A for a definition of compensation - https://www.irs.gov/publications/p590a/ch01.html#en_US_2016_publink1000230355