topic Re: IRA Contribution in Retirement tax questions

IRA Contribution

LaughTrack — Thu, 25 Mar 2021 14:45:52 GMT

I have a W-2 from a non qualified pension for 2020 which says I have $11,000 in the "wages" box (Box 1) so I thought I was eligible to contribute to an IRA, but Turbo Tax is saying I can't since I don't have any "earned income."

(I didn't otherwise have earned income in 2020.) Can I contribute - without penalty - or not?

Thanks for your help.

Re: IRA Contribution

dmertz — Thu, 25 Mar 2021 14:51:21 GMT

The amount on a W-2 that will support an IRA contribution is the amount in box 1 minus the amount in box 11. Deferred compensation does not support an IRA contribution.

Re: IRA Contribution

LaughTrack — Thu, 25 Mar 2021 14:52:00 GMT

Thanks. I didn't realize you had to deduct Box 11. Saved me from a mistake.