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

connessdg · ‎June 6, 2019

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

IsabellaG · ‎June 6, 2019

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 · ‎June 6, 2019

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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b1111 · ‎July 3, 2020

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