Roth IRA funding 2019

[Bluedog]

My husband retired in March.  I'm going to use round numbers. I'm disabled so no earned income.  My husband made 24000 in 2019 from his job he retired from and a part time job, but 10000 was invested in his 457b and 1000 toward health insurance pre-tax. We are age 50 and 61 so we should be able to invest 14000 (7000 each in a Roth IRA). We moved and our old tax advisor/CFP and IRS(I called) can't follow but says we can invest 14000 between the 2 of us in our Roth's. New tax person days no the 457b money and health insurance is excluded from earned income.  Saying we can only invest 13000 in Roth's between us. Is 457b contribution in the year contributed still considered in your gross income as earned income as pertaining to whether a Roth IRA can be fully funded? I can't seem to get an answer do for now funded only 13000 but would like to find fully.

[dmertz]

Assuming that the $10,000 that went to the 457(b) was elective deferral to the traditional account in the 457(b), the new tax person is correct and your old tax person is incorrect.  The amount available to be contributed to IRAs is the sum of the amounts in box 1 of each of his Forms W-2, minus any amount that might be present in box 11.  Presumably the sum of the box 1 amounts is $13,000, limiting the total IRA contributions to $13,000 (with no more than $7,000 being contributed by either spouse alone).

From IRS Pub 590-A:

The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans).