topic Retired with W-2 in Get your taxes done using TurboTax

Retired with W-2

webmb — Mon, 09 Mar 2026 11:39:40 GMT

We are using TurboTax Premier for our 2021 taxes.

My wife and I are retired and she receives a W-2 from her previous employer. The values in BOX 1,3, 5, 12a have the same values (the code for 12a is "C" (Taxable cost of group-term life insurance over $50,000)). Box 12a also have a value of "M" and "N" with different amounts.
Can she contribute that amount to her ROTH IRA for 2021?

Re: Retired with W-2

RobertB4444 — Wed, 06 Apr 2022 23:19:46 GMT

The amount in box 1 counts as earned income so yes, you can contribute up to that amount to your wife's retirement account.

Re: Retired with W-2

webmb — Wed, 06 Apr 2022 23:21:00 GMT

Is this considered "nondeductible contributions"?

Re: Retired with W-2

DawnC — Wed, 06 Apr 2022 23:30:07 GMT

Group Term Life Insurance. If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2. Wages are earned income.

Roth IRA contributions are nondeductible. Traditional IRA contributions can be tax-deductible.