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connessdg
New Member

Does ordinary business income (from Schedule K-1) qualify as earned income for purposes of IRA contribution deductability ?

"Ordinary business income" is shown in box 1 of Schedule K-1 (Form 1120S).

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IsabellaG
Expert Alumni

Does ordinary business income (from Schedule K-1) qualify as earned income for purposes of IRA contribution deductability ?

No, distributions you receive as a shareholder of an S corporation do not constitute earned income for retirement plan purposes. You can only include the compensation you received from the S Corp, in the form of W-2 Wages.

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IsabellaG
Expert Alumni

Does ordinary business income (from Schedule K-1) qualify as earned income for purposes of IRA contribution deductability ?

No, distributions you receive as a shareholder of an S corporation do not constitute earned income for retirement plan purposes. You can only include the compensation you received from the S Corp, in the form of W-2 Wages.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
b1111
New Member

Does ordinary business income (from Schedule K-1) qualify as earned income for purposes of IRA contribution deductability ?

 
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