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Level 2
posted Jun 1, 2019 8:30:35 AM

My only wages are from a non-qualified deferred compensation plan. May I make a Traditional IRA contribution from this income? TurboTax for 2018 suggests that I can.

Pub 590-A informs that non-qualified deferred income is not included in compensation for determining the IRA contribution limit. So, it is possible that this is a bug in TurboTax, unless something has changed in the 2018 tax law.

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1 Best answer
Expert Alumni
Jun 1, 2019 8:30:36 AM

No, if your only income is from a non-qualified deferred compensation plan, you are not eligible to make traditional IRA contributions.  See the following IRS link for What Isn’t Compensation?

1 Replies
Expert Alumni
Jun 1, 2019 8:30:36 AM

No, if your only income is from a non-qualified deferred compensation plan, you are not eligible to make traditional IRA contributions.  See the following IRS link for What Isn’t Compensation?