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Returning Member
posted Feb 23, 2024 10:58:06 AM

Roth IRA contribution

I am 66 and have been receiving a monthly payment from my qualified pension plan for which I have not contributed anything.  The amount was calculated based on my years of service and my income.  It is reported on a 1099-R box 7.  I include this amount as income.  I have no earned income, just investment income and this pension.  The pension is greater than $8,000 per year.  Am I correct in my understanding that I may contribute to a Roth IRA in the amount of $8,000 for 2024 and that the pension income is considered earned income?  Also, why does Turbo Tax indicate that I am ineligible for a Roth IRA contribution?

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1 Replies
Level 15
Feb 23, 2024 10:59:34 AM

To fund an IRA you must have taxable compensation.  Pension income is not taxable compensation.