Is Fulbright research scholarship treated as taxable compensation for IRA purposes?

[Notsobright1]

I received funds from a Fulbright research scholarship in 2025, but I am not currently a candidate for a degree.

I understand that the full amount of the scholarship is taxable income, but is the scholarship treated as taxable compensation for IRA purposes, so I can make a contribution to a Roth IRA?

[RobertB4444]

Unless it was reported to you on a W2 a taxable scholarship generally counts as unearned income.  Unearned income is not usable as a qualification for an IRA contribution.

If it was reported to you on a W2 in box 1, however, it is earned income and can be used for the IRA contribution.

@Notsobright1 

[AmeliesUncle]

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@Notsobright1 wrote:

I received funds from a Fulbright research scholarship in 2025, but I am not currently a candidate for a degree.

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The 'not a candidate for a degree' part could makes it questionable.

You have be "in the pursuit of graduate or postdoctoral study" in order for it to qualify as compensation for contributing to an IRA.

Graduate or postdoctoral study.

A scholarship or fellowship is generally taxable compensation only if it is in box 1 of your Form W-2. However, for tax years beginning after 2019, certain non-tuition fellowship and stipend payments not reported to you on Form W-2 are treated as taxable compensation for IRA purposes. These amounts include taxable non-tuition fellowship and stipend payments made to aid you in the pursuit of graduate or postdoctoral study and included in your gross income under the rules discussed in chapter 1 of Pub. 970.

https://www.irs.gov/publications/p590a#en_US_2024_publink100053507