IRA Contribution

[LaughTrack]

I have a W-2 from a non qualified pension for 2020 which says I have $11,000 in the "wages" box  (Box 1) so I thought I was eligible to contribute to an IRA, but Turbo Tax is saying I can't since I don't have any "earned income."

(I didn't otherwise have earned income in 2020.)   Can I contribute - without penalty - or not?

Thanks for your help.

[dmertz · Accepted solution]

The amount on a W-2 that will support an IRA contribution is the amount in box 1 minus the amount in box 11.  Deferred compensation does not support an IRA contribution.

[LaughTrack · Accepted solution]

Thanks.   I didn't realize you had to deduct Box 11.   Saved me from a mistake.