Is my income under a nonqualified pension plan considered earned income that would qualify me to contribute to a ROTH IRA?

[MargaretL · Accepted solution]

Do you mean distribution from nonqualified pension plan? If so, then no - distribution from any retirement plans do not qualify as earned income for purposes of IRA contributions.

If "income" is something else... please comment and I will edit my answer.

[user17673716559]

Margaret - I also receive payments from a nonqualified pension plan. The local municipalities in Pa tax earned income. Since these payments are not considered earned income for purposes of IRA contributions does that also mean they would not be considered earned income for this local income tax? (I’m getting conflicting answers on the research I am doing on this topic.)

Thanks

Mike

[ThomasM125]

You would have to check the regulations in the municipality where you work or reside, but in general pension distributions would not be considered earned income for Federal, state or local tax purposes.